The Enforcement Directorate (ED) is investigating into the funding of Indian Premier League (IPL) matches by Rose Valley Group that was the principal sponsor of one of the IPL teams for two years — 2012 and 2013.
Investigators are reportedly trying to track the source of money that went into sponsoring the IPL team. It is suspected that money collected from depositors under several schemes by the group could have been used to sponsor the team for two consecutive years.
As of now, the ED is investigating into two cases against the Rose Valley Group whose collection from small investors is said to be bigger than that of the Saradha Group, another multi-crore chit fund company that went bust.
One case against the Rose Valley Group was started on the basis of complaints received from SEBI while another was taken from the Orissa government.
While the first case lodged by the SEBI deals with issuing of ‘unauthorised’ debentures worth Rs 12 crore violating SEBI norms, the other case is lodged in Orissa for “cheating public at large”. There were at least half a dozen cases lodged against the group in Orissa which were clubbed into one case and now being investigated by the ED.
According to sources, around 2,000 accounts of the group were traced by the central agency. The accounts are now being examined. The central agency has already traced around Rs 90 crore of the deposit taking company. In May, the Enforcement Directorate raided several offices owned by Rose Valley.
Much like the Saradha Group, which was booked for running several Ponzi schemes in the state, Rose Valley raised crores from small investors under various deposit-seeking schemes over the last few years. As there is no case registered with the West Bengal Police against the company, the ED is investigating into cases of non-payment to depositors lodged against the company in Orissa, Assam and other northeastern states. The directorate has started a case against the company based on a complaint received from the SEBI.
Meanwhile, on June 18, in a fresh order against the Rose Valley Real Estates and Constructions Ltd, the SEBI has asked the company and its directors to repay the investors in three months and wind up the schemes by complying with the SEBI order. The order has also added that non-payment to the investors would result into registering criminal/ civil cases against the company.