Somnath Dutta, a senior executive of chit fund-aided Saradha media and close aide of suspended Trinamool MP Kunal Ghosh, was Sunday sent to police custody for seven days in connection with the multi-crore-rupee scam.
Dutta was arrested from his Salt Lake residence Saturday, hours after Ghosh was placed under suspension by the Trinamool Congress on disciplinary grounds.
The charges against Dutta include under section 120B (criminal conspiracy) of Indian Penal Code, for denying salary and other benefits to the employees of Saradha Media.
Dutta, vice president of Saradha Media, was remanded in police custody for seven days after he was presented before the additional chief judicial magistrate's court in Bidhan Nagar Sunday.
Coming out in Dutta's defence, Ghosh said he did not believe he could be involved in any "unethical activity".
"Whatever I know of him, I think he is a gentleman, he is helpful. He tried his best to help the employees. I don't believe he can be involved in any unethical activity," he said.