Enforcement Directorate (ED) initiated investigation under the provisions of Prevention of Money Laundering Act, 2002 against Rose Valley Real Estates Construction Ltd. Chairman Gautam Kundu along with other persons related to company. It was alleged in the Securities Exchange Board of India that Rose Valley Real Estate Construction Limited and its Associate Companies repeatedly floated Secured Non – Convertible Debentures in the year 2001-2002, 2004-2005, 2005-2006 and in 2007-2008 and issued to more than 49 persons in each financial year and illegally raised the total sum of Rs 12.82 crores.
During the course of investigation conducted under PMLA it is revealed that the accused Company under the direction and control of accused persons had accumulated investments from 2585 persons, a total of around Rs 12 crores and acquired control over various securities as defined under section 11(C) of SEBI Act, 1992 read with section 24 and 27 of the said Act. The money so acquired were further laundered by investing the same in various movable properties.
Provisional Attachment order under PMLA was issued in respect of fourteen fixed deposits having total value of Rs 12 crores. In this case two accused persons namely Gautam Kundu and Amit Banerjee were arrested in 2015. Prosecution Complaints were filed in 2015.
The charges in the above said prosecution complaints were framed on February 12, 2012 and one of the accused person Arun Mukherjee who was Debenture Trustee and was responsible for the acts and affairs of the Company at the relevant time had pleaded guilty for the offence of money laundering before the Special Court under PMLA in Kolkata. The Court had sentenced Arun Mukherjee to suffer rigorous imprisonment of 7 years and to pay a fine of Rs 2,50,000 in default rigorous imprisonment for another 6 months.
Further, trial with respect of other accused persons is under progress.
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