Chief Justice of India (CJI) Sharad Arvind Bobde's mother was allegedly duped to the tune of Rs 2.5 crore by the caretaker of a family property in Nagpur, the police said on Wednesday.
The accused, Tapas Ghosh, 49, was arrested on Tuesday night.
A Special Investigation Team (SIT) is looking into the matter under the supervision of DCP Vinita Sahu, said Nagpur commissioner of police (CP) Amitesh Kumar.
Mukta Bobde, CJI Bobde's mother, is the owner of Seadon Lawn near Akashwani Square which is rented out for marriages and other functions, he said.
The Bobde family had appointed Ghosh as caretaker of the property in 2007.
He was paid salary and also a commission on bookings.
Taking advantage of Mukta Bobde's advanced age and frail health, Ghosh and his wife allegedly kept her in the dark about transactions, and did not deposit the entire rent amount which they collected, the CP said.
They also allegedly forged receipts.
The fraud came to light when several bookings were canceled during lockdown for coronavirus but the customers could not get refund of the booking amount from Ghosh, he said.
After Mukta Bobde lodged a complaint of cheating in August, an SIT consisting of Economic Offences Wing officials was formed. All the bookings from 2017 onward were scrutinized which revealed that Ghosh had duped the Bobde family of Rs 2.5 crore, the CP said.
He had also not paid bills for solar system installation and some fabrication work, Kumar added.
The SIT had questioned Ghosh during its probe.
On late Tuesday night, SIT officials registered a case at Sitabuldi Police Station in the city under Indian Penal Code Sections 409 (criminal breach of trust), 420 (cheating) and 467 (forgery) against Ghosh and his wife, and arrested Ghosh.
He was produced in a court which remanded him in police custody till December 16, the commissioner said.