New Delhi, Jul 14 (IANS): The Central Bureau of Investigation (CBI) said on Wednesday that it has arrested a man named Debabrata Sinha in connection with its probe involving Infinity Realcom Ltd, a Kolata based chit fund company.

A CBI spokesperson said that the agency arrested Sinha and carried out searches at two places in West Bengal, which led to the recovery of several incriminating documents.

He said it was alleged that Sinha had entered into a conspiracy with the other directors of a Kolkata-based private company, which resulted in misappropriation and siphoning of funds illegally collected by the private company from gullible investors.

"Sinha allegedly acted as a middle man between Infinity Realcom Ltd and the regulators and got undue approvals in favour of the company from the regulatory authorities," the official said.

The CBI had registered the case on June 5, 2015 pertaining to the private company and others who collected funds to the tune of Rs 565 crore.