New Delhi, Jul 10 (IANS): The Central Bureau of Investigation (CBI) said on Monday that it has arrested Jag Mohan Garg, the CMD of Tirupati Infraprojects Pvt. Ltd., in connection with a Rs 289.15 crore loan fraud case.

A senior CBI officer said that the case against Jag Mohan Garg and Tirupati Infraprojects was lodged on allegations of causing loss to the tune of Rs 289.15 crore to a consortium of banks comprising the Bank of India, Union Bank of India, Canara Bank, Bank of Baroda and UCO Bank.

The consortium led by Bank of India had granted term loan of Rs 300 crore to Tirupati Infraprojects between 2009 and 2014 for the construction of a hotel in Paschim Vihar, Delhi, along with commercial spaces.

"The accused had sold several commercial spaces of the said hotel-cum-commercial building to various parties without intimating the lender banks, and funds obtained from these buyers were siphoned off," the officer said.

The CBI said that searches were conducted on May 27 at the premises of the accused, which led to the recovery of several incriminating documents.

"Garg was produced before a special CBI court in Delhi, which remanded him to agency custody till July 13," the officer said.