Bangalore: The State Corps of Detectives (COD) today (July 31, 2004) arrested the Managing Director of Delhi-based Sharp Menthol (India) Ltd in Bangalore in connection with the alleged diversion of rice meant for various Government welfare schemes including food for work.

COD officials said Sanjay Singhal was arrested on charge of conspiring with the prime accused in the rice scam, Jagadish, since absconding, in diverting and exporting the rice meant for food for work programme.

Police had seized nearly 15,000 metric tonnes of rice belonging to the Food Corporation of India (FCI) from private godowns in the coastal city of Mangalore, which was intended to be shipped abroad this May, and later the Government handed over the case to the COD.

COD Inspector General (EO) Sushant Mohapatra told that the investigation agency had documentary evidence of Singhal's alleged involvement in a larger conspiracy and "inspecting" illegally the warehouses of Karnataka State food and civil supplies corporation.

"We have got documentary evidence to prove that he had authorised his staff to inspect state ware houses for rice and had been involved in a larger conspiracy," he said.

Mohapatra said Singhal had also admitted, diverting 70,000 tonnes of rice since last two years from Andhra Pradesh and exported it to African countries for a Swiss importer.

COD officials said Singhal would be produced before the jurisdictional magistrate at Mangalore later this night.