New Delhi, Jun 26 (IANS): The Enforcement Directorate (ED) said on Friday that it has arrested trader Ajay Chandrashekar Baheti in connection with its probe into the PDS scam case.

Following his arrest, a court has sent Baheti to eight-day agency custody.

The ED said in a statement that Baheti was arrested under the Prevention of Money Laundering Act (PMLA) on Thursday and he was produced before the court on Thursday.

The ED had initiated the investigation on the basis of the FIR and chargesheet filed by the Maharashtra Police against Baheti under the provisions of the Indian Penal Code and the Essential Commodities Act.

Baheti had gained illicit pecuniary advantage from the Public Distribution System (PDS) by forming a syndicate to systematically steal ration under government quota at Nanded in Maharashtra.

During the investigation, it was revealed that Baheti had indulged in unlawful activities and illegal profiteering.

Explaining the modus operandi, the ED said that PDS food grains (wheat and rice) from the warehouses of the Food Corporation of India were transported in trucks to various tehsils in Nanded and Hingoli districts Maharashtra.

"These trucks were diverted to Baheti's factory -- India Agro Anaj Limited -- instead of their designated destination. This scam involved more than 3,000 ration shops of two districts and 28 godowns of the Food Corporation of India," the ED said.

"Some unknown agents, traders, business people and government officials were also involved in the said scam," it added.