The chairman of Rose Valley Group of Companies, Gautam Kundu, was arrested by the Enforcement Directorate on Wednesday after he was summoned for questioning in a ponzi scam where investors were allegedly duped to the tune of nearly Rs 15,484 crore.
Yogesh Gupta, special director, ED confirmed the arrest of Kundu who is the beneficial owner of Rose Valley Group of Companies. “Kundu has been arrested under criminal charges and provisions of the Prevention of Money Laundering Act. He will be produced in a court tomorrow,” a source in the agency said.
The arrest of Kundu, who was being investigated by the ED as well as the CBI, is likely to cause fresh tremors within the ruling Trinamool Congress as the company was said to be linked to many party leaders. Many Tollywood actors and other bigwigs were roped in by the company in various capacities in an effort to spread its reach far and wide.
According to a source, several senior politicians, including jailed minister Madan Mitra, are likely to be tagged in the case. Meanwhile, TMC MP Tapas Pal, who was director in two companies of Rose Valley, is already under ED scanner. The CBI too intensified its investigation into the Rose Valley case last month as it conducted raids at 43 locations, including at the residences and offices of Gautam Kundu and other directors. The raids were also conducted at TMC MP Tapas Pal’s residence in South Kolkata.
The ED, under the stringent provisions of the PMLA, had earlier attached 2,631 bank accounts of the Rose Valley group containing Rs 295 crore.
Gautam Kundu had started off with investment schemes and times share schemes of various kinds and is said to have raised over Rs 15,000 crore, which is six times higher than Saradha group’s collection from the market.
The group had allegedly floated a total of 27 companies for running the alleged chit fund operations out of which only half-a-dozen were active.
Like Saradha Group, the Rose Valley group too has a diversified business activities like hotels, entertainment, cinema production etc, most of which had been questioned by SEBI.
(With PTI inputs)