Karuvannur case: Amount seized by ED will be paid to investors; Rose Valley case in Calcutta to be used as model

KOCHI: At least a few of the victims of the Karuvannur Co-operative Bank scam will be able to recover their deposits through the Enforcement Directorate (ED) following the 'Rose Valley' case in Kolkata as a model. The ED had handed over Rs 12 crore seized from the Rose Valley Group, which cheated investors by promising huge profits, to the investors, according to a court order.

88.58 crore assets and investments of Karuvannur case accused have been confiscated by ED. The move is to pay this amount to the investors if the application filed by the ED in the PMLA court is approved.

In the past, the investors were refunded the amount only after the trial in the case of investment scams. This will take years. As per Section Eight (Section 8) of the amended PMLA Act, the deposit can be returned to the investors with the permission of the court at the trial stage itself. The one in Kolkata was the first such action.

ED sources told 'Kerala Kaumudi' that the Kolkata court order and proceedings will be used as a model for Karuvannur.

Rose Valley Fraud

ED and CBI found that Rs 15,000 crore was extorted by accepting deposits with promises of huge profits and free stays at resorts. 12 crore in 14 fixed deposits were seized by the ED. 22 lakh people had applied for a refund of their investment amount. Group chairman Gautam Kundu was arrested in March 2015. The trial against the accused is still going on