Acting on an internally developed intelligence, CBI had been monitoring the CMD for the last six months before arresting him on Saturday in Bangalore.

CBI has filed two cases against him for allegedly receiving bribe of Rs 50 lakh and "fraudulently bypassing" rules and regulations to enhance credit limit of two companies which have been involved in a coal scam.

"We are determined to fight corruption at high level and today's case was one such example," said CBI Director Ranjit Sinha.

Others arrested included CMD's brother-in-law and a Chartered Accountant.

CBI is conducting searches at 20 places in four cities in connection with the case.

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