Washington (Agencies): Anjan Dutta Gupta, an eminent Indian American from Georgia, with close connections in the ruling Democratic establishment here, has been arrested by federal authorities.

He was charged of bribing Navy officials for allegedly seeking software contracts worth millions. The kickback scheme involved about USD 10 million of naval funds, US Attorney Peter Neronha said.

The scheme dates back above 10 years and involved bogus and inflated invoices and work that was paid for but never performed, prosecutors said.

Dutta Gupta, 58, founder and president of Advanced Solutions for Tomorrow (ASFT), was arrested on Sunday in Atlanta by the US Customs agents and turned over to FBI as he reached the country from a trip to Chile.

Born and brought up in Kolkata, Dutta Gupta, who arrived in the US in the mid-80s made an initial court appearance in Atlanta on Monday and was set free on USD 25,000 unsecured bond. He was issued order to surrender his passport and asked to appear before a Magistrate Judge in US District in Providence on February 15.

US authorities have also charged 52-year-old Ralph Mariano, a civilian programme manager and senior systems engineer with NAVSEA, on accepting kickbacks from him. NAVSEA is the largest of the Navy's five system commands and accounts for nearly one quarter of the Navy's entire budget.

In one of the uncaptioned photographs on a website containing information on Dutta Gupta, wwwkavitachhibber.com, he is seen receiving a plaque from Union Finance Minister Pranab Mukherjee.

He is said to be the major funder of the 2002 Bengali Convention, by donating a big sum as the largest annual convention of the Bengalis in the US was unable to generate funds in the aftermath of the twin-tower attack in September 2001.