Rose Valley to challenge Sebi order in Calcutta High Court
New Delhi: Rose Valley Group Thursday said it will legally challenge against capital market regulator Sebi's order against its 'holiday membership' scheme.
Sebi has barred Kolkata-based Rose Valley group from raising public money in the name of 'holiday membership' scheme, through which it is estimated to have garnered over Rs 1,000 crore without necessary regulatory approvals.
In a statement, Rose Valley Group said it would file a legal suit against the Sebi order at the Calcutta High Court.
"The group's real estate unit, Rose Valley Real Estates and Constructions Ltd, already has a pending case against Sebi at the Calcutta High Court on the commissioning of CIS (Collective Investment Scheme) whose verdict is still pending in the court.
Noting that Rose Valley Group was legally examining the order, its Chairman Gautam Kundu said that "Rose Valley is not running any illegal scheme through its holiday package".
"There are also speculations in the group that this might be the consequence of the arrest of R P Singh, ex-AGM of Sebi by the anti-corruption department in 2010 on account of seeking bribe from Rose Valley," the statement said.
Yesterday, Sebi in its order had asked Rose Valley group firm -- Rose Valley Hotels and Entertainments Ltd -- and its directors not to collect any more money from investors under it 'Holiday Membership' scheme.
The regulator had also restrained them from launching new schemes, dispose of properties and divert funds till the further orders.
In 2011, Rose Valley real estates arm was barred by Sebi from raising money from the public in name of selling of plots of land.
Rose Valley Hotels and Rose Valley Real Estates together have been alleged of raising Rs 1,006.7 crore from public.
According to the group, it has 22 self-owned hospitality properties across India out of which 3,60,000 room nights are sold through this scheme every year.
"We also have a tie-up with various other properties in India for 14,000 room nights per day. Which means we have a total capacity of 54,70,000 room nights available for our Holiday Scheme members per year," it added.