Ahmedabad, Jan 27 (Agencies): Police today arrested a lady Mahant (head of a religious shrine) and recovered cash worth Rs 1 crore 26 lakhs (all in Rs 2000 notes) and 2.4kg gold (24 bars of 100gm each) from her residence here.

SP Neeraj Badgujar said that the head of Mukteshwar Math, situated in Badgam area of Banaskantha district, Sadhvi Jai Shree Giri, has been arrested in connection with a cheating case filed by a local jeweller. "During a raid in this connection at her residence in Gauri Park Society in Paschim Police Station area of Palanpur, the headquarters town of Banaskantha district, altogether 6300 notes of Rs 2000 denominations worth Rs 1.26-crore and 24 gold bars each weighing 100gm were recovered," the SP said.

A local jeweller Pritesh Shah, who also owns a shop in the city, had filed a case against three persons including the Sadhvi and one Chirag Rawal and one unknown person claiming that they had taken more than Rs 5-crore from him in last few months in the name of giving him gold at cheaper rates. They had neither given any gold to him nor returned the money, the SP said.The two other accused are still at large. The Sadhvi has been arrested from her residence during the raid today and was being interrogated further. The Income Tax Department has also been informed about the recovery of cash and gold.Notably, the Sadhvi was seen throwing Rs 2000 notes on a well-known singer during a folk music event called Dyro recently.