Ambala, July 01: Former executive director of Haryana Finance Corporation, U S Chadha, has been arrested in a multi-crore loan scam by Haryana Vigilance Bureau. Chadha's arrest yesterday followed the arrest of senior IAS officer of Haryana Ajit Mohan Sharan on June 25 in this connection, bureau sources said.

Sharan had served as managing director of the corporation. The bureau today produced Chadha and Sharan in the court of civil judge-cum-duty magistrate N K Singhal who sent them to police remand for four days.

Two other officers, who had been arrested earlier, have already been let off on bail. The public prosecutor alleged that loans granted by the officers had caused revenue loss of Rs 98 crore to the state government.

He said these officers had granted loans to 37 industries in Ambala, Panchkula, Yamunanagar, Kaithal and Kurukshetra districts.

The public prosecutor submitted that custodial presence of the two officers was required for the investigation. Sharan's counsel said that during five days of police remand, the bureau has failed to find out any irregularities committed by their client.

Bureau Report