Kolkata/ Port Blair, Mar 25: The Enforcement Directorate (ED) on Wednesday arrested Rose Valley Group chairman Gautam Kundu after several hours of questioning at its Kolkata office. ED, a federal agency, investigates foreign exchange violations. 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 Union government.
The group claimed to have several hotels across India, 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.
Kundu or his lawyer couldn’t immediately be contacted for comments. In the eyes of ED, the Rose Valley group operated Ponzi schemes promising attractive returns. 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.
