The managing director of Sumangal Group, Subrata Adhikari, was arrested in Mumbai on the charge of money laundering, police said on Monday.

“He was arrested by a team of Kolkata police from a guest house in Mumbai last night. He is being brought to Kolkata today and will be produced in a court here,” Joint Commissioner of Police (Crime) Pallab Kanti Ghosh said.

The charges levelled against him include money laundering and raising money through chit fund ponzi schemes, he said.

Sumangal group allegedly amassed deposits worth Rs 100 crore from West Bengal and neighbouring States through a ’Flexi Potato Purchase Scheme’, police said.

In December last year, nearly 5,000 depositors staged an agitation and lodged a complaint with Shakespeare Sarani police against the company for non—payment of amount against matured Potato Flexi Bonds.

But by then, Sumangal had closed its offices here and all its directors were absconding, they said.

Investigations revealed that Sumangal promised depositors 30 to 100 per cent returns on their investments within 15 months through a scheme involving purchase and subsequent sale of potatoes.