ED conducts search at Rose Valley's jewellery outlets

Enforcement Directorate (ED) officers today started a search operation at three branded jewellery outlets of ponzi scheme firm Rose Valley in the city.

A team of ED officials visited the outlets to ascertain the extent of alleged money laundering that had taken place in setting up the expensive showrooms.

In August, angry depositors of Rose Valley's various schemes had ransacked a hotel owned by the company at a prime location in the city, demanding their money back.

In a major crackdown on Rose Valley, market regulator SEBI had, in November, ordered a refund of thousands of crores of rupees to the investors, who had parked their money in the holiday membership plans of the group. SEBI had declared the schemes illegal.

As per the SEBI order, more than 21.9 lakh investors were believed to have invested in the holiday membership plans.

The ED had launched its probe against the company, based on a complaint filed by SEBI, following which the owner of Rose Valley, Gautam Kundu, was arrested and put behind bars in 2015.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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