ED probe finds funds were ploughed into group's jewellery, entertainment and hospitality businesses
The case is related to a probe by Securities and Exchange Board of India over allegations that Rose Valley had raised money by issuing debentures without complying with the norms.
While Rose Valley claimed that it was mobilising funds for real estate business, Sebi came to the conclusion that the company was in fact running a Collective Investment Scheme and did not seek market regulator's permission, mandatory for these products.
SBI Capital, Axis Capital, GMR Holdings, United Breweries, Alpic Finance (a Cipla group unit), Saradha Realty, United Bank of India and Trident India are among the prominent entities named in the list.
Sebi had directed some of these companies to wind up their unregistered schemes and repay investors.
In a fresh ponzi clampdown, Sebi on Wednesday 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 (Rs 10 billion) without necessary regulatory approvals.
Rose Valley is one of the biggest money businesses after Sahara.
Sahara chief Subrata Roy may not come out clean in the biggest ever investment fraud that he allegedly did few years ago.
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