Market regulator Sebi has barred Rose Valley Hotels & Entertainments (RVHEL), an arm of the Kolkata-based Rose Valley Corp, from raising money from the public, from disposing of or transferring any of its assets, and from transferring any of its funds currently with any bank. This comes a day after it cracked down on Sumangal, a company running collective investment schemes through potato bonds.
The Gautam Kundu-run Rose Valley has for long been under Sebi’s scanner. The regulator has alleged that RVHEL was raising money through collective investment schemes (CIS) that were under the purview of Sebi and the company did not have permission from the regulator to engage in it. The Sebi order is also a showcause notice to RVHEL and its directors as to why it should not take appropriate actions under the Sebi Act and CIS Regulations. The regulator has given 15 days to the group and its directors to file their reply.
Sebi started investigating the case after it received a complaint from Assam Police regarding RVHEL and another group company Rose Valley Real Estates through the group’s Holiday Membership Plan (HMP). Under the HMP, an investor can book a holiday package through payment of monthly installments and upon maturity or completion of tenure, can either avail of the facilities or opt for maturity payment.
According to the Sebi order, the two companies had raised over Rs 1,000 crore from the public in Assam through various schemes, promising returns up to 17.65% per annum till February 2012. The Sebi order is based on letters and complaints from the governments of Assam, Tripura and Jharkhand, and also letters sent by the regulator asking the group to give details of all its fund raising activities and the replies from the company.
The Gautam Kundu-run Rose Valley has for long been under Sebi’s scanner. The regulator has alleged that RVHEL was raising money through collective investment schemes (CIS) that were under the purview of Sebi and the company did not have permission from the regulator to engage in it. The Sebi order is also a showcause notice to RVHEL and its directors as to why it should not take appropriate actions under the Sebi Act and CIS Regulations. The regulator has given 15 days to the group and its directors to file their reply.
Sebi started investigating the case after it received a complaint from Assam Police regarding RVHEL and another group company Rose Valley Real Estates through the group’s Holiday Membership Plan (HMP). Under the HMP, an investor can book a holiday package through payment of monthly installments and upon maturity or completion of tenure, can either avail of the facilities or opt for maturity payment.
According to the Sebi order, the two companies had raised over Rs 1,000 crore from the public in Assam through various schemes, promising returns up to 17.65% per annum till February 2012. The Sebi order is based on letters and complaints from the governments of Assam, Tripura and Jharkhand, and also letters sent by the regulator asking the group to give details of all its fund raising activities and the replies from the company.
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