Mumbai, April 15 -- On Saturday, the same day diamantaire Mehul Choksi was arrested in Belgium at India's request, Union minister of state for finance Pankaj Chaudhary in New Delhi, handed over a bank demand draft of Rs.515.31 crore to Justice (retired) DK Seth. The latter is chairman of the Calcutta high court-appointed Asset Disposal Committee, and the money will be used to pay back defrauded investors in the over Rs.17,520 crore Rose Valley Ponzi scam that has its roots in multiple states.

The recipients of this money will include 7.5 lakh people across the country who were duped by the Rose Valley Group that promised gullible investors land parcels and time share in hotels. Following investigation by the Enforcement Directorate 3.1 m...