The Mumbai Police on Wednesday arrested Ashok Advani, publisher of Business India and former director of the Mumbai-based Jai Hind Cooperative Bank, on charges of embezzling Rs 27 crore (Rs 270 million) from a savings account held by a trust.
The money was reportedly deposited in the trust's account by Advani himself, who later had it transferred into his own account.
The complainant, Niranjan Hiranandani, the chairman of the trust, Hyderabad (Sind) National Collegiate Board, has claimed that along with interest the total money due to the trust is Rs 37 crore (Rs 370 million).
Jai Hind Cooperative bank is now under liquidation.
The general manager of the bank, JK Lalchandani, was held on December 5 and was remanded to police custody till December 13.
The arrests were made following a complaint to the Mumbai Police. According to the complaint, Advani had got Rs 27 crore deposited by the trust transferred into his own account in early 2001.
Police sources said Advani would be produced in a special court on Thursday. The bank's board was superseded in late 2003 as it had defaulted on payments to depositors.
The bank had failed, as its directors, who had taken loans totalling Rs 49.77 crore (Rs 497.7 million), failed to pay up. A liquidator was appointed on the RBI's recommendation.