Denying his bail plea for the second time a city court on Tuesday remanded the chairman of the Rose Valley Group of Companies, Gautam Kundu, in judicial custody till April 9.
Kundu was arrested by the Enforcement Directorate earlier this week and was remanded in the custody of the Central agency for five days.
“We opposed Kundu’s bail plea on grounds of larger conspiracy and the way he illegally raised money which is an offence under the Prevention of Money Laundering Act,” ED counsel Bhaskar Banerjee told The Hindu . The ED did not ask for Kundu’s custody since there was no need for his immediate interrogation and pleaded for his judicial custody.
The Rose Valley Group of companies allegedly raised Rs.15,000 crore from the markets which is significantly higher than the scam-tainted Saradha Group.
Rose Valley is one of the largest companies to run Collective Investment Schemes without the approval of SEBI. According to sources it had more than one crore investors and 10 lakh agents.
Meanwhile, the employees of the Rose Valley Group staged a protest outside the court premises during the day and demanded immediate release of Kundu.
