New Delhi: Former Tata Finance managing director D S Phendse was arrested by Delhi police on February 25 for his alleged involvement in misappropriation of Rs two crore in a group company.

` The arrest comes a day after Delhi High Court rejected his anticipatory bail plea in the case.

Delhi Police's crime branch sleuth nabbed Pendse in New Delhi area at around noon, joint commissioner of police (crime) U K Katna said.

The crime branch had registered a case against him in September 2002 and initiated investigations against Pendse on a complaint, filed on behalf of Inshaallah Investment Ltd (IIL), a Tata Finance subsidiary, alleging that the former MD had issued cheques worth Rs two crore to brokers for payment of personal transactions of a former Director.

A case of cheating, forgery, criminal conspiracy and misappropriation of funds of IIL was registered and a non-bailable warrant was issued against him recently.

Police, while opposing his anticipatory bail in the court on February 24, had stressed the need for his custodial interrogation, citing that the former MD's personal secretary had revealed that Pendse, after resigning from the company had parted away with some important documents.

PTI