New Delhi, Jan 8 (IANS): The Enforcement Directorate (ED) on Saturday said that it has arrested Madhukar G. Angur, the former Chancellor of Alliance University in connection with a prevention of money laundering case for allegedly misappropriating University funds by cheating around 4,500 students' parents to the tune of Rs 107 crore.

Earlier, four separate cases under various sections of Indian Penal Code were registered by Banglore Police against Angur.

The ED initiated money laundering investigation on the basis of these FIRs. The ED found that Angur was allegedly involved in money laundering through different means.

Madhukar Angur, Priyanka B.S. and Ravi Kumar, the three accused had physically lodged themselves inside the campus premises of the Alliance University, Bengaluru, between 2016 and 2017.

During this time Madhukar Angur and others informed the parents of the students through emails and physical notices not to deposit the fee in the official accounts of the Alliance University and instead asked the parents to deposit the fees of their children into the illegally opened bank accounts by Madhukar Angur and others in the name of Srivari Educational Services.

Hence, the parents of about 4,500 students were persuaded to deposit the fees in the said illegally opened bank accounts, which amounts to the tune of Rs 107 crore which was siphoned off by Madhukar Angur and others by collecting the tuition fees, hostel fees and other fees illegally from the student community.

"The accused was produced before the Hon'ble City Civil and Sessions Judge and Special Judge for PMLA cases at Bengaluru on saturday. The ED sought the judicial custody of the accused. The court after hearing the arguments of both the sides allowed the move of the ED. The court has remanded him to seven days judicial custody," said the ED official.

The official said that further probe in the matter was on.