P.K. Jain, former General Manager of Construction & Design Services of the Uttar Pradesh Jal Nigam, one of the accused in a case pertaining to alleged irregularities in the implementation of the National Rural Health Mission (NRHM) funds, has been arrested by the Central Bureau of Investigation.

Remanded in police custody

Mr. Jain was on Thursday produced in a Ghaziabad court that remanded him in police custody till January 13.

Mr. Jain has been made an accused along with the former Uttar Pradesh Family Welfare Minister, Babu Singh Kushwaha, and the former Director-General (Family Welfare) S.P. Ram, in the case regarding the upgradation of 134 district hospitals by the C&DS for a sum of Rs.13.4 crore.

The agency claimed that the work was further contracted to a company named Surgicoin on forged papers and the materials installed in the hospitals were inferior.

During a search of Mr. Jain's bank locker, the agency purportedly seized Rs.1.1 crore in cash and three kg of gold.

The CBI summoned Mr. Jain for questioning on Thursday morning and he was subsequently arrested.

The agency has registered five fresh cases pertaining to the alleged NRHM scam and in this connection, it questioned the former Director-General (Family Welfare), UPSIC Managing Director Abhay Kumar Bajpai and a person named Sameer Jain. Some more officials have been summoned.

Other angles

While investigations in these cases involving an alleged loss of Rs.28 crore to the exchequer are under way, it is learnt that the CBI is also exploring the possibility of booking the accused officials in disproportionate assets cases.

Some more significant arrests are also likely as the probe progresses.