Lucknow, Oct 4 (IANS): The UP Police's Economic Offences Wing (EOW) has arrested the managing director of a private company for siphoning off Rs 3.03 crore in the name of construction of schools.

The accused, Vinod Singh, was arrested on Sunday from his apartment in Lalbagh locality in Lucknow.

According to reports, the Centre had released funds in 2008 for the construction of Kasturba Gandhi Residential Schools for girls in the state.

"A Lucknow-based private company got a contract to build schools in 26 districts of the state. The project cost was Rs 36 lakh per school. Bijnor was allotted 13 schools and the construction deadline was 2010. However, the company constructed only a few buildings and made off with almost 90 per cent of project funds, allegedly in collusion with Education Department officials," a senior EOW officer said.

Subsequently, the company was blacklisted and an FIR filed against its MD Vinod Singh, Manager Dharmendra Singh, and President Bhikhari Singh.

They were booked under charges of criminal breach of trust and dishonesty.

"Dharmendra Singh was arrested earlier. We are yet to arrest Bhikhari Singh," the officer said.

The FIR was registered in 2012 in Bijnore by the local police. In 2014, the case was transferred to the EOW.

The names of two basic shiksha adhikaris had also come to the fore following which a report had been sent to the state government.