Virendra Rastogi, wanted by the Central Bureau of Investigation in the multi-crore duty drawback scam, has been arrested in London and charged by the police with preventing the course of justice.
The bail application of Virendra, the multi-millionaire chief executive of RBG Resources, was turned down by a magistrate's court in London on Monday.
The 35-year-old Virendra, who had been instructed by the British police not to leave the country, was arrested last Friday shortly before he was about to leave for Dubai to attend a family funeral.
While the CBI had issued an Interpol Red Corner Notice against him and also announced a cash reward of Rs 10,000, the Federal Bureau of Investigation has issued Letters Rogatory against him in connection with a bank scam to the tune of $600 million.
Sources in the Serious Fraud Office, which effected the arrest has spent much of the past nine months examining allegations that up to $412 million worth of metal trades involving RBG were fabricated and later used as collateral for loans from banks.
Ironically, Virendra was till last year considered as one of the wealthiest non-resident Indians with assets worth $150 million.
Earlier his brother, Ravindra, was arrested and deported by Dubai authorities to India in connection with the duty drawback scam. He is also wanted by FBI in connection with the scam in the US.