New Delhi, Dec 10 (IANS): The Central Bureau of Investigation (CBI) said on Friday that it has arrested Pranab Chatterjee, who is a Trinamool Congress leader and Chairman of the Burdwan Municipality in West Bengal, in connection with a chit fund fraud case.

The case pertains to ponzi schemes that were reported from West Bengal and Odisha.

The CBI said that the accused allegedly allured the public at large to invest in some scheme with a promise of high rate of returns at maturity, without the requisite permission from the regulatory authorities.

A large number of investors invested their hard-earned money with the said trust, which was being run by the accused, among others. It was also alleged that the trustees failed to repay the maturity amount, cheated the investors, misappropriated their hard-earned money, closed down the branches and fled.

The CBI found that Chatterjee was closely associated with the trust and the trustees.

Chatterjee allegedly misappropriated over Rs 3 crore from the trust for personal use.

On Friday, searches were conducted by the CBI at the premises of the accused, which led to the recovery of several incriminating materials.

Chatterjee was produced before the Special CBI court, which remanded him to two-day CBI custody.