Kundu's lawyers had appealed for a bail claiming that not a single investor had lost money. The court rejected the plea and remanded him to jail custody till April 9.
During the hearing, ED counsel told the court that Rose Valley had been issuing debentures to the public without statutory approval from regulatory authorities.
They said that the company tried to project itself as a banking company but failed to disclose documents when asked by SEBI. Kundu was arrested by ED on March 25 under Prevention of Money Laundering Act (PMLA).
Before Kundu was to be brought to the court here, a group of Rose Valley agents gathered outside the court, following which the police cordoned off the area.