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The Central Bureau of Investigation has arrested Ashok Jain, chief advisor to Volkswagen India project, in connection with the Rs 11.7 crore Volkswagen (Rs 117 million) scam in Andhra Pradesh.
Jain was arrested after midnight on Thrusday from Gurgaon (near Delhi) and flown to Hyderabad where he was remanded to CBI custody by a designated court, CBI sources said on Friday.
His premises had been raided by the agency on Thursday during which it seized all the bank accounts and also claimed to have got 'important documents' in connection with the scam.
The CBI had last week registered a case against officials of the private firm and other unknown persons in which it had alleged that Andhra Pradesh government had released Rs 11.7 crore (equivalent to Euro 2 million) for a joint venture project for a car manufacturing plant.
The Volkswagen case sparked off a major political controversy in Andhra Pradesh prompting the state government led by Y Rajashekhar Reddy to call for a CBI probe besides shifting Major Industries Minister B Satyanarayana from the portfolio following political furore over the issue.