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Coming down heavily on so-called "chit fund" companies based in West Bengal, Bihar deputy chief minister Sushil Modi on Saturday said that after the Saradha scam, it was now the turn of Rose Valley.
"They (Rose Valley) are collecting money in Bihar in the name of hotel booking in places like Barasat. They say if the investors are not willing to avail of the hotel service, they will get back the money with high interest. Why on earth someone in Bihar will be interested in booking a hotel in Barasat (in North 24 Paraganas district of West Bengal)?" Modi asked.
"Besides the wrongdoing , they are trying to earn credibility by sponsoring an IPL (Indian Premier League) team like Kolkata Knight Riders. After Saradha, the next target should be Rose Valley," he added.
Responding to the allegations, Rose Valley chairman Gautam Kundu said: "It's a free country. Anybody can say anything. We are in this business for the last 10 years. So, we know what we are doing."
Incidentally, one of the Rose Valley companies is under the scanner of the corporate affairs ministry for alleged wrongdoing. Earlier, the Securities and Exchange Board of India (Sebi) stopped its illegal debentures.
After the Saradha scam broke out, Rose Valley wrote a letter to West Bengal chief minister Mamata Banerjee, clarifying the group had assets worth Rs 10,000 crore and was geared to pay off investors, if need be.
