Kolkata, Feb 20 (IANS): The amount of around Rs 96 lakh, received by St. Xaviers College here in two tranches from Rose Valley Group Chairman, Gautam Kundu, when the company was a fully legal entity, has now been effectively handed over to the Enforcement Directorate which has attached the amount following the due process of law, college sources in the know said on Wednesday.

The donation was received in two cheques of Rs 71 lakh and Rs 25 lakhs for constructing two hostels, for which due receipts were also given to the company.

"When the donation was received by the college and its alumni association, Rose Valley was not a banned organisation. The amounts were paid by cheques, and receipts were given against them," said a source.

After the probe against Rose Valley started, each of the recipients of funds from the group was called by the Enforcement Directorate.

It is learnt that St. Xaviers representatives presented their case to the ED by producing the cheque and receipt details, and explained how the funds were utilised. The utilisation certificates were also handed over to the ED.

The college authorities also informed the ED that if the agency so desired, the institution was ready to set aside a like amount of the funds received from the group, for the competent authority to follow the due process of law and take back the amount.

The amount was then set aside by depositing it in a couple of accounts and the ED went through a process and attached the money on February 3.

"In effect the money has been returned. So it is a simple case of the college having taken funds from a company which was then a legal entity. Later, it was alleged by the probe agencies that the company has laundered public money, which the college was not aware of till then. And now the ED has attached the said amount deliberately kept in these accounts by the college for the agency to follow the due process in this regard," the source added.