According to police, in October 2004, Kundalia had entered into an agreement with Manas Chandra Dutta, a tenant of a residential building at 35/9 Padmapukur Road near Bhowanipore, where a multistoried building was to come up.

“It was mentioned In the agreement that Kundalia would allot Dutta a flat for vacating the building. Later, Kundalia not only refused to allot him a flat but asked Dutta to accept some money and settle the matter,” said Jawed Shamim, Deputy Commissioner, Detective Department.

Dutta had been living in the building as a tenant since 1956. Following the agreement, he left the flat and had put up in his sister’s house at 102 Manicktala Main Road.

Dutta lodged a complaint at Lalbazar on Thursday. Following which, the officers belonging to the anti-cheating section of the detective department went to Kundalia’s office at 1, Chandni Chowk Street and arrested him. He was booked under Section 120 (B), 467 and 468 of Indian Penal Code, said a police officer.