Kolkata: The Enforcement Directorate on Wednesday arrested Rose Valley Group chairman Gautam Kundu in connection with the multi billion rupee ponzi scam.
ED sources said Kundu was taken into custody after he failed to give proper answers during sustained questioning spread over six hours on being summoned to its office.
Kundu allegedly suppressed information and did not provide details about the quantum of money collected by his group companies from the market by promising huge returns.
The company also raised money through time-share schemes, promising the public that their deposits could be redeemed on maturity in the shape of accommodation in its hotels.
The group – involved in sectors like realty, hospitality, media and films – has been under the scanner of various central agencies including market regulator Securities and Exchange Board of India (SEBI), the Serious Fraud Investigation Office (SFIO) and the ED.
Kundu, who had arrived at the ED office around noon for grilling, was taken to a local hospital after his arrest. He would be produced in court on Thursday.
Soon after Kundu’s arrest, a group of Rose Valley employees shouted slogans and staged a protest demonstration before the ED office.
Group managing director Shibamoy Dutta said the arrest was made despite its “cooperation with all central agencies involved in the probe”.
“I have just now spoken to Gautam Kundu. On behalf of ED, no paper has been shown to him. He told that he has been arrested. But he hasn’t been told why. The Rose Valley group has cooperated with all the central agencies which are conducting he probe,” Dutta said.
The group came into focus after the Saradha ponzi scam broke in early 2013. The same year, the corporate affairs ministry named Rose Valley as one of the 73 companies involved in ponzi schemes in West Bengal.
Having cast its net across West Bengal, Tripura, Assam, Odisha, Jharkhand and Maharashtra and others, the company is alleged to have raised close to Rs.15,000 crore. (IANS)
