Rejecting the bail petition of Gautam Kundu, chairperson of Rose Valley Group of companies, a city court here on Thursday remanded him to five-day custody of the Enforcement Directorate (ED).
The court observed that his bail plea was rejected in the interest of investors, given the nature and gravity of the case. ED had arrested him on Wednesday.
Counsel for Mr. Kundu, Sandipan Ganguly, however said that the chairperson was arrested illegally as a Division Bench of the Calcutta High Court had passed an order in November 2014 saying that no coercive action could be taken against him till further orders. His arrest amounted to contempt of court, Mr. Ganguly said. He also maintained that Rose Valley was issuing debentures on a private placement basis and not to the public.
Maintaining that Mr. Kundu’s arrest was not a contempt of court, ED counsel Bhaskar Banerjee said the ED had rightfully arrested Mr. Kundu under Section 19 of the Prevention of Money Laundering Act. Rose Valley had also issued debentures to the public in huge amounts, he said.
He said that Rose Valley was issuing debentures without the sanction of SEBI and mobilised huge money from the public amounting to a financial fraud. Mr. Banerjee added that Mr. Kundu was not cooperating with the investigation agency and was providing incorrect information.
Journalists attacked by Rose Valley employees
At least three journalists were injured and their camera equipment was damaged and snatched by angry employees of the Rose Valley Group at the court premises.
While the employees showered Mr. Kundu’s car with flowers as he arrived inside the court, they rained punches and blows on media personnel for reporting the arrest of Mr. Kundu. Journalists present at the court alleged that the police were silent bystanders initially. While one journalist sustained serious injuries on his head, two others sustained minor injuries.