Kolkata, Oct 29 (IANS): The Central Bureau of Investigation (CBI) here on Tuesday arrested Pailan Group's Chief Managing Director Apurba Kumar Saha in connection with Rs 574 crore chit fund scam.

Saha had collected Rs 574 crore from investors under various fraudulent schemes on assurance of paying high returns on maturity. Shah fled the scene after cheating thousands and allegedly misappropriated the money, the CBI said.

"The Pailan Group had collected approximately Rs 574 crore from the market through various chit fund schemes, assuring investors high rate of interest," a CBI official said.

In August, the CBI had arrested Bipin Kumar Singh, director of the Pailan Group.

The CBI had taken over the case from the West Bengal Police, which was probing the case following complaints by agents working in Saha's company in 2014.

The Securities and Exchange Board of India (SEBI) in 2015 had barred two Pailan Group companies -- Pailan Agro India and Pailan Park Development Authority -- for illegally raising Rs 98 crore funds.