Friday, August 12 2005 20:38 Hrs (IST) - World Time -

New Delhi: CBI (Central Bureau of Investigation) has arrested Chief Advisor to German-based Volkswagen, India project, Ashok Jain, in connection with the Rs 11.7 crore Volkswagen scam in Andhra Pradesh.

Jain was arrested after midnight from Gurgaon and flown to Hyderabad where he was remanded to CBI custody by a designated court, CBI sources said here (New Delhi) today (Aug 12, 2005).

His premises had been raided by the agency yesterday (Aug 11, 2005) during which it seized all the bank accounts and also claimed to have got "important documents" in connection with the scam.

The CBI had last week registered a case against officials of the private firm and other unknown persons in which it had alleged that Andhra Pradesh Government had released Rs 11.7 crore (equivalent to two million Euro) for a joint venture project for a car manufacturing plant.

The Volkswagen case sparked off a major political controversy in Andhra Pradesh prompting the state government led by Y S Rajashekhar Reddy to call for a CBI probe besides shifting Major Industries Minister B Satyanarayana from the portfolio following political furore over the issue.