Kolkata, Sep 9 (IANS): The CBI Tuesday arrested former director general of West Bengal Police Rajat Majumdar in connection with the multi-crore-rupee Saradha chit fund scam.

"He has been arrested on grounds of conspiracy, cheating and misappropriation of funds," said a spokesperson for the Central Bureau of Investigation (CBI).

Probing the scandal, the CBI earlier grilled Majumdar, who worked as a security advisor for the tainted company, for the second time during the day.

Majumdar's name cropped up after suspended Trinamool Congress Rajya Sabha member Kunal Ghosh, now behind bars, accused the former Indian Police Service officer of swindling crores of rupees in organising a cultural programme in Las Vegas in 2012.

Majumdar joined Trinamool in recent years, and served as the party's poll observer for Birbhum district for the 2013 panchayat election.

He faced the first round of questioning Aug 23.

On Aug 14, CBI sleuths raided Majumdar's residence and seized many documents.