New Delhi, Apr 5 (IANS): A CBI special court here has rejected the anticipatory bail plea of a private firm owner who fears being arrested for his suspected involvement in the National Rural Health Mission (NRHM) scam in Uttar Pradesh.

Central Bureau of Investigation (CBI) Special Judge Talwant Singh rejected the anticipatory bail plea of Delhi-based firm Surya Tej Earth Movers' director Sumit Tandon. The application was filed March 22.

"Keeping in view the seriousness and nature of allegations where huge funds of government were misappropriated and the government was cheated and that the accused has neither joined investigation nor he supplied the necessary documents, this is not a fit case to grant anticipatory bail," the judge said in its order made available Wednesday.

The court, while rejecting the bail application, also took into account the fact of territorial jurisdiction and said that the case was being heard in a Ghaziabad special court.

"Huge cash payments were allegedly made by private supplier to the then minister and his associates in lieu of these contracts. Investigation carried out so far has indicated that tenders were allegedly awarded in a pre-determined manner to favour certain private firms," the CBI has said.

The CBI said that Tandon had handed money to an accused in the case.