Kolkata: The Economic Offence Wing of the Central Bureau of Investigation (CBI) arrested Kolkata-based industrialist Keshav Bangur and a former major operator of Calcutta Stock Exchange Vinod Baid for allegedly siphoning off funds from the Bank of Rajasthan, CBI sources said.

While Bangur was nabbed on January 10 from his Kolkata residence, Baid was picked up from Hyderabad where he had shifted from Kolkata a few years ago for allegedly helping Bangur siphon off the bank's money, the sources said.

Baid, promoter of the now defunct Prudential Capital Market, was brought to Kolkata and produced before the acting chief metropolitan magistrate on January 11, who remanded him to CBI custody till January 14.

Bangur too was produced before the court on January 10 and remanded to seven day's police custody.

Baid was booked under section 120B, 420/467/468/471 of Indian Penal Code (IPC). He was also charged under clause 13 (1) (C) of D/RW-13 (ii) of E C Act, 1988.

While granting the remand, magistrate ordered the CBI to produce Baid before 3rd special court, where the case would be heard henceforth.

It was alleged that Bangur owed several 100 crores to Bank of Rajasthan, of which he was once a chairman. The money was allegedly borrowed from the bank by Bangur through his group companies.

Bangur had promoted the bank, but lost control to Tayals around 1999. Prior to that, Reserve Bank of India (RBI) had directed Bangur to resign from the board of the bank.

PTI