New Delhi, Dec 12 (IANS): The Enforcement Directorate (ED) on Sunday said it has arrested two persons in connection with the Navjeevan Credit Co-operative Society scam case.

According to officials, Jai Narayan Sharma and Nizamudin were arrested on the basis of the role played by them in money laundering.

Officials said they were arrested to unearth the true facts about generation, acquisition, layering and integration of proceeds of crime and for corroboration of other evidence in the aforementioned case.

According to the probe agency, a day ago (Saturday) it conducted searches at six premises of Sterling Urban Co-operative Bank Ltd, Ashapura Agro Industries, Western Energetics Private Limited, residential premises of Jai Narayan Sharma Chairman Sterling Urban Co-operative Bank Ltd, Rawat Singh and Preeti Swami in Rajasthan and Gujarat under the provisions of the Prevention of Money Laundering Act.

The investigation was initiated on the basis of an FIR and chargesheet filed by the Special Operation Group, Jaipur, Rajasthan Police.

In the FIR, it was alleged that Navjeevan Credit Co-operative Society through the Chairman, his aides and relatives opened more than 200 branches in Rajasthan and Gujarat and duped the investors by promising them unrealistic returns on their investment.

"The Chairman, his aides and relatives availed loans from the society funds fraudulently in the name of entities owned and controlled by them and their close associates," the ED said.

As a result of searches, incriminating documents and digital devices along with cash of Rs 62.60 lakh and silver weighing 20 kg were seized during the search operation.

A Special CBI Court has remanded both the accused to the custody of Enforcement Directorate till December 24.

"Further investigation is under progress," the ED added.