figured the solution a while ago but since no one had posted any solution I suppose I can help those who myt be asking the same qn.

First of all adding a groupo does not create a mail box thats why the mails didn't go no way. To create a group mail list;
1.Add a user e.g finance
2.Add the mail address as aliases of all those guys who are in the group e.g the finance dept.

Enjoy!
Taruvinga