New Delhi, Aug 23 (IANS): Enforcement Directorate (ED) on Wednesday said that they have arrested accused Chandra Shekhar in a case of embezzlement of funds of NHAI and Haryana State Industrial Infrastructure Development Corporation Limited (HSIIDC).

The official said that property worth Rs 2.56 Crore has also been attached in this case.

The ED initiated money laundering investigation based on an FIR registered by State Vigilance Bureau, Haryana and the CBI, under various sections of IPC, and Prevention of Corruption Act, for criminal conspiracy, cheating, forgery and criminal misconduct of public servant.

The ED investigation has revealed that Shekhar, in connivance with the then District Revenue Officer- CUM-Land Acquisition Collector & Competent Authority Land Acquisition (DRO-cum-LAC & CALA), Panchkula and others, played an active role in fraudulent transfer of NHAI and HSIIDC funds meant for acquisition of lands to ineligible persons causing wrongful loss to the exchequer of Rs. 38 Crore approximately.

ED said that these funds, which are proceeds of crime, were further routed to different bank accounts, later withdrawn in cash and invested in purchase of various properties.

"During the investigation, Shekhar was non-co-operative and resorted to withholding of relevant information and misleading the investigation. Subsequently he was arrested," said the ED.

The official said that they have got seven days custody of the accused.

Earlier, Naresh Kumar Sheokand the then DRO-cum-LAC & CALA, Panchkula was arrested by ED on July 24. Sheokand is in judicial custody at present.

Further investigation into the matter is ongoing.