St. Xavier’s College (Autonomous) has decided to return to the central exchequer the Rs 96 lakh received as sponsorship from Rose Valley Group chief Gautam Kundu, the college’s Principal said on Thursday.

Kundu had sponsored Rs 71 lakh for a hostel project, in addition to Rs 25 lakh for an alumni programme of the 157-year-old institution.

Kundu was arrested by the Enforcement Directorate in March 2015. His chit fund company is accused of defrauding depositors in West Bengal and Odisha of an amount totalling Rs 17,000 crore.

“We have decided to return the money as and when competent authority tells us — may be the Supreme Court or High Court. We will return the money to the exchequer,” college Principal Fr. Dr. J. Felix Raj told IANS.

“We received Rs 71 lakh in 2011 in good faith for a good cause (college hostel). He had sponsored one floor in the hostel. He had also sponsored the alumni programme (Rs 25 lakh) in 2013, called ‘Beyond Barriers’,” Raj said.

Raj denied the charge that the money from the chit fund company was transferred to the ruling Trinamool Congress account via St. Xavier’s account.

“Can a 157-year-old college do that?” he asked.

The Central Bureau of Investigation has arrested two Trinamool Congress MPs, Tapas Pal and Sudip Bandyopadhyay, for their alleged involvement with the Rose Valley Group.