New Delhi: Former Uttar Pradesh bureaucrat P K Jain was arrested on Thursday by CBI in connection with alleged irregularities in utilisation of funds allocated under National Rural Health Mission (NRHM) scheme.

The former general manager of Construction and Design Services (C and DS), was called to the CBI headquarters this morning and was placed under arrest this afternoon.

He was later taken to a designated court in Ghaziabad.

The CBI had registered a case against Jain on January 2 for allegedly causing a loss of Rs 5.46 crore in the upgrading work of 134 district hospitals.

The CBI alleged that Rs 13.4 crore was given to Construction and Design Services, a unit of UP Jal Nigam, for the upgrade work of 134 districts hospitals.

It alleged that the work was sub-let to a Ghaziabad-based firm on the basis of bogus and forged documents.

"The materials installed in the hospitals were found to be of inferior and sub-standard quality thereby causing an approximate loss of Rs 5.46 crore to the exchequer," the CBI alleged.

It claimed to have recovered three kgs of gold and cash of Rs 1.10 crore besides some important documents during search operations at Jain's residence on Wednesday.

The CBI summoned some officials of Uttar Pradesh for questioning in connection with alleged irregularities in
utilising Rs 10,000 crore funds allocated under the centrally-sponsored NRHM.

Besides Jain, former director general of Family Welfare Department S P Ram was among the senior officials called for questioning by the CBI, the sources said.

The questioning came a day after the agency carried out inter-state searches at about 60 locations, including the residence of former Uttar Pradesh minister Babu Singh Kushwaha, to probe alleged irregularities.

The agency had registered five cases on January 2 against certain government and private sector officials, including one against Kushwaha alleging loss of about Rs 28 crore in implementing the Centrally-sponsored scheme meant for 72 districts of Uttar Pradesh.

Kushwaha, a BSP OBC leader of the state, was sacked by Mayawati and expelled from the party last November following his alleged involvement in the multi-crore scam.

NRHM funds to the tune of about Rs 10,000 crore were allocated to Uttar Pradesh for the period 2005-06 till date by the Union Health and Family Welfare Ministry.