PK Iyer, vice chairman of the Deccan Chronicle group, was arrested from a five-star hotel in Bhubaneswar early on Saturday in connection with a bank fraud case, a police official said.
Iyer, who was arrested at 2.30 am, is an accused in an alleged bank fraud case registered in Hyderabad and had been absconding for several months. A non-bailable arrest warrant had been issued for him.
Bhubaneswar police arrested Iyer after getting a tip-off that he was staying in a suite in Trident Hotel under an assumed name.
“We had inputs from the state special director of intelligence that a suspect was staying in Trident Hotel and it might be Iyer, who is wanted in a fraud case being probed by the CBI. We raided his room and arrested him,” Bhubaneswar's deputy commissioner of police Satyabrata Bhoi told HT.
After the arrest, police informed the CBI and handed Iyer over to the central investigating agency.
The case against Iyer relates to alleged fraud involving a loan of Rs 357 crore from Canara Bank. The company could not be immediately reached for comment.
The CBI has filed a criminal case under several sections of the Indian Penal Code against three promoters of the Deccan Chronicle group, including chairman T Venkantram Reddy, managing director T Vinayak Ravi Reddy and Iyer.
The CBI arrested Venkatram Reddy and Vinayak Reddy in February.
The Deccan Chronicle group publishes several newspapers, including the highly circulated Deccan Chronicle and The Asian Age.
According to reports, the group owes more than Rs 4,000 crore to multiple lenders.