Rose Valley Chairman arrested

Kolkata, March 25: Rose Valley Group chairman Gautam Kundu was on Wednesday arrested by the Enforcement Directorate in connection with the multi-billion rupee chit fund scam.

ED sources said Kundu was taken into custody after he failed to give proper answers during sustained questioning spread over several hours when summoned to its office.

The Rose Valley group, which claimed to be collecting money under a so-called time-share scheme, had raised at least Rs 10,000 crore, according to estimates of the government.

The group claimed to have several hotels across the country, and it said the deposits collected were to be redeemed on maturity in the form of accommodation at its hotels.

ED officials, however, said they have enough evidence to prove that time share was only an eye wash: money was collected, promising repayment in cash. These officials declined to be identified.

Last November, ED seized around Rs 300 crore from the Rose Valley group’s bank accounts, which for the agency is the biggest ever cash haul. (IANS &Agencies)