Arun Jain, chairman and managing director of the Chennai-based Polaris Software Lab, has been released from custody by the Indonesian police.

Jain was in Jakarta with a team of senior executives to resolve some commercial issues with Bank Artha Graha when he was detained by the local police, along with Polaris senior vice-president Rajiv Malhotra.

He would have to stay in Jakarta for some time and help the investigation into the case.

"Jain was released on Friday morning and is now in the Indian embassy. His passport has been returned and he will be back (in India) in a day or two," Union IT and Communication Minister Pramod Mahajan said in Delhi.

NASSCOM chief Kiran Karnik told PTI that Jain's release was the outcome of a high-level diplomatic intervention by India.

On Thursday, External Affairs Minister Yashwant Sinha had spoken to his counterpart in Jakarta in this connection.

For the second time in two days, Indonesian ambassador Zakaria Soemintaa Tmadja was on Thursday summoned to the external affairs ministry in Delhi where India expressed its desire that this case be resolved as soon as possible.

At the same time, Indian Charge d' Affaires in Jakarta Amar Sinha on Thursday told the Indonesian political leadership that since Polaris was willing to refund $660,000 to Bank Artha Graha, besides paying damages, there was no need to detain its officials.

The Indian embassy had given a guarantee to Jakarta that the company would cooperate with local authorities. It was conveyed that this was a commercial dispute and should not be made out to be a criminal one.

Mahajan, meanwhile, has thanked External Affairs Minister Yashwant Sinha for his 'initiative' and Indonesian authorities.

(Additional inputs PTI)