New Dehli, Aug 1 (IANS): The Central Bureau of Investigation (CBI) on Thursday said it has arrested the Chief Manager of the Indian Bank's Zonal Office in Tamil Nadu in an on-going investigation of the Srijan scam case.

The arrested Chief Manager was identified as Deo Shankar Mishra, who was the Bank Manager of Indian Bank's Bhagalpur branch in Bihar. The CBI has alleged that he diverted over Rs 8 crore from the bank account of the Bhagalpur Deputy Development Commissioner to the bank account of Srijan Mahila Vikas Sahyog Samiti Ltd.

The CBI had registered the case on the request of the Bihar government, on the allegations of fraudulent diversion of government funds from the accounts of the Bhagalpur Deputy Development Commissioner (DDC)-cum-CEO during 2009-2017.

In the press release, CBI has alleged that Mishra had cleared the transaction of Rs 8,79,06,070, and diverted the proceeds of the account of the DDC-cum-Chief Executive Officer to the account of Srijan Mahila Vikas Sahyog Samiti Ltd in Bhagalpur.

The CBI has registered multiple cases against the Srijan Mahila Vikas Sahyog Samiti, its office-bearers and others, including bank managers and land acquisition officers, for alleged diversion and misuse of government funds.

It is alleged that the organisation, which gives vocational training to women, diverted the funds to its accounts between 2004 and 2013, in connivance with the bank and the state government officials.