Chennai: Founder Chairman of the SRM Group of Educational Institutions TR Pachamuthu was on Thursday night arrested over the medical admission scam where over 100 parents have complained that they paid hefty donations for medical seats but were then duped.
The arrest comes a week after the Madras High Court (HC) pulled up the Chennai city police for its failure to arrest Pachamuthu. The HC had threatened to hand over the case to an external agency then.
"Pachamuthu has been arrested by CCB (Central Crime Branch) sleuths," a top police official told the PTI.
The SRM University Chancellor's arrest was made under section 420 (cheating), section 406 (criminal misappropriation of property entrusted to someone) and section 34 (invoked when a criminal act is done by several persons in furtherance of the common intention of all) of the Indian Penal Code.
Film producer Madhan (Vendhar Movies), who claimed he was just an agent for Pachamuthu and SRM and had allegedly collected donations running into crores from the aggrieved parents, is the key accused in the case. Madhan has been missing since May 27.
Madhan's family members had filed a habeas corpus and sought Pachamuthu's arrest after he went missing.
According to reports, the Chennai Police has registered 109 cheating cases and Madhan had allegedly collected about Rs 73 crore from the parents.
Earlier in 2013, CBI had conducted raids in SRM and Madhan's production house, which had yielded unaccounted cash.