NCP MLA Ramesh Kadam has been arrested by the Maharashtra CID for his alleged involvement in a scam running into hundreds of crores that has rocked the state controlled Annabhau Sathe Development Corporation, reports Mumbai Mirror.
Sources say the scam involves alleged fraud in disbursement of loans taken from district cooperative banks as well.
Accusation of alleged diversion of funds meant for the welfare of backward communities to organizations in which the NCP leader had personal interests has been laid against him.
The NCP MLA illegally sanctioned Rs 41 crore to Joshaba Central Cooperative Society – an organization allegedly controlled by him. He had also allegedly sanctioned Rs 58 crore to set up a spinning mill in Aurangabad – also controlled by him.
Sources familiar with the investigation underway say it is a Rs 350 crore scam.