Officials said B Madan of Chennai-based private film production company Vendhar Movies was arrested late last evening under the Prevention of Money Laundering Act (PMLA) law.
The Enforcement Directorate, in a statement, said Madan was arrested in "connection with the cheating of public to the tune of Rs 91 crore in the guise of medical admissions in the SRM Group of institutions".
The central probe agency had registered a criminal case against Madan and others based on an FIR by Chennai police last year.
"About 133 parents have filed complaints against Madan and it is estimated that about Rs 91 crore has been collected by him in the guise of medical college admissions during 2016. Madan was arrested by the ED even as he was out on bail in the police case," it said.
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The agency said it recorded statements of several parents and victims who stated that they have paid cash amounts ranging from Rs 50 lakh to Rs 1.5 crore to Madan for admitting their wards into the SRM Medical Colleges only to find later that he had allegedly cheated them and absconded.
"However, he claimed that he has paid these amounts on weekly basis to SRM management," the ED said.
The agency added in the statement that the college management "denied his allegations and stated that the said amounts were never received.
"They claimed that they follow a prescribed procedure for their admissions and Madan has no role in their admission process."
The agency said its probe in the case is continuing and it is looking at attaching the assets of Madan, whom he created with the alleged tainted money, and to unravel the wrongdoings in the entire case.
He has now been lodged in the Puzhal central jail here, it added.
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