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HomeIndiaED attaches assets of KKR, Kolkata's St Xavier’s College in Rose Valley...

ED attaches assets of KKR, Kolkata’s St Xavier’s College in Rose Valley ponzi scam

Probing money laundering charges, the ED has attached Rs 1 crore from 3 accounts of St Xavier’s College and Rs 11.87 crore of KKR.  

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Kolkata: The Enforcement Directorate (ED) Monday attached assets of Kolkata’s premier St Xavier’s College and that of Kolkata Knight Riders, the IPL team owned by actor Shah Rukh Khan, as part of its investigations into the Rose Valley ponzi scam. 

Under the PMLA (Prevention of Money Laundering Act), the directorate has attached Rs 1 crore from three accounts of St Xavier’s College and Rs 11.87 crore of KKR. It also attached the accounts and landed property, worth Rs 35 crore, of Icare Medical College and Hospital in Haldia (East Midnapore), owned by a former CPM MP. 

In all, the ED attached Rs 71 crore Monday. 

The amount seized from St Xavier’s College is donation handed to the institution by the Rose Valley group chairman, Gautam Kundu, who was arrested by the directorate in March 2015. The Rose Valley group was also the sponsor of SRK’s KKR. 

Apart from these, accounts of Multiple Resorts Ltd, Rose Valley’s landed property in Rajarhat-New Town area, flats and other layered properties were also attached.  

The ED is still probing the accounts of Xavier’s alumni association, with sources telling ThePrint that a transaction of Rs 5 crore between the Rose Valley group and the alumni association is under the scanner. KKR is also being probed as some of its transactions allegedly violate Foreign Exchange Management Act provisions. 

Six years and counting 

The Rose Valley Group’s chit fund scam broke in 2014 and involves alleged fraud worth Rs 16,000 crore. Of this, Rs 6,500 crore is still unpaid. 

In its six-year-long investigation, the ED has recovered Rs 4,750 crore of total unpaid amount of Rs 6,200 to depositors of the Rose Valley Group of Companies. The money has been recovered through attachment of property and bank accounts. 

Sources in the agency told ThePrint that the depositors can be repaid if the court directs the agency to auction the attached properties but added that it will be a herculean and time-consuming task. The money is, however, now back with the government exchequer, said a senior police official.  


Also read: All you want to know about ED — the dreaded nightmare of Indian politicians & businessmen


 

 

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