A team of Enforcement Directorate (ED) from Ranchi Sub-Zonal Office on Thursday attached Hotel Park Prime property located near Football Stadium at Morhabadi in connection with Rose Valley Chit Fund Scam worth Rs 1,950 crore in West Bengal and Odisha. The action was taken under the Prevention of Money laundering Act and the possession of the hotel will remain with the Enforcement Directorate for disposal till further orders.

It is apprehended that that the money earned from Rose Valley Chit Fund scam was used to buy the chain of Hotel Park Prime. Hotel Park Prime Ranchi, located at a prime location, was said to be purchased by the Rose Valley for Rs 94 crore in the year 2013.

Sources revealed that the ED action would not hamper functioning of the hotel, but if the provisional attachment is verified, the hotel would become property of the government of India.

“The income generated by the hotel along with other monetary benefits has to be deposited into the account of the Directorate,” stated the notice put on the main entrance of the hotel. Till then transferring or charging of the property through sale, gift. Mortgage, pledge or otherwise has been prohibited by the Directorate, it added.

The Central Bureau of Investigation (CBI) and Enforcement Directorate are currently probing the Rose Valley financial scam while the group CMD Gautam Kundu is currently in judicial custody.

Rose Valley came under the scanner of the Enforcement Directorate (ED) and CBI after the Supreme Court’s instruction to probe shady companies raising funds from small depositors, fallout of the Saradha scam. Though the ED and CBI sleuths put Rose Valley Scam at around Rs 1700 crore.

The ED under the Prevention of Money laundering Act lodged an FIR against Rose Valley Chairman Gautam Kundu and others in the year 2014 and arrested him in 2015. As many as 27 companies were said to be opened by Rose Valley Chit Fund but only six of them remained functional. Before lodging an FIR against Rose Valley, SEBI had also investigated into it and reportedly had found irregularities of Rs 15000 crore in the matter.