In 2010,the companys operations came under SEBI scanner,in two years it started investing in sports,media,entertainment in a big way.
Among the many non-banking financial firms,which have come under scanner of various market and financial regulators in the wake of Saradha Group going bust,is Rose Valley. The company used to run a Collective Investment Scheme (CIS) also called as chit fund under the name of Ashirvad. The company was said to have mobilised Rs1,207 crore by selling 508,792 plots. They,however,reportedly handed over only 9,045 plots. After 2010,when the company came under the SEBI scanner and the scheme was stopped abruptly the matter is now sub-judice Rose Valley curiously has been investing in sports,entertainment and media and are also entering big into the hospitality business.
It tied up with the Indian Premier League team Kolkata Knight Riders (KKR) last year after becoming the teams principal sponsor with a deal of Rs 5.5 crore. The sponsorship amount has been increased 10 per cent this season,and the agreement also has a clause of extending the contract for one more year with a hike of a further 10 per cent.
Under the agreement,the companys logo presentation is mandatory on top chest in the team shirt. Any three Knight Riders players have to be made available for brand promotions. KKR co-owner Shah Rukh Khan has to provide time two days a year to support the company. The company must have a hospitality box at the stadium and there has to be instadia visual display which is called perimeter signage.
Interestingly,the agreement was not made with the KKR owner. Rather,it has been signed with KKR Sports Private Limited which has Venky Mysore as its CEO.
The company joined hands with KKR because they wanted to build their image and extend their reach. With 254 branches across the country,the association with the KKR provided them the right platform, said a source.
Rose Valleys managing director Shibomoy Dutta has been repeatedly saying that they are clean and have never defaulted on their commitments to the employees and customers. We have been running our business since last 17 years and we are a strong asset-based company. I can assure that none of our associates and investors will be deprived.
My sincere request to all,not to get panicked from the current situation. This is just going to be a passing phase, Dutta said in a press statement.
But questions have started to surface. Bihars Deputy Chief Minister Sushil Kumar Modi said the other day that Rose Valley was going to be the next big thing after Saradha. The company is on the warning list in Assam as well. And the legal battle with the SEBI is yet to be wrapped up.
So,for a company that represents KKR owned by a celebrity like Shah Rukh Khan,will the latter review its association with Rose Valley? Cant comment now. Lets wait for the process to be completed, Venky Mysore responded.