Kolkata, Oct 26 (TIWN) A businessman said to be close to a Trinamool Congress leader and the chairman of Halisahar Municipality in West Bengal's North 24 Parganas district was arrested in the multi- crore Sanmarg Cooperative chit fund scam, said the CBI on Wednesday.

Trinamool Congress leader and Halishahar municipality chairman Raju Sahani was arrested by the CBI on Friday in a chit fund scam case registered in Kolkata in October 2018. 

“We have recovered Rs 80 lakh, a firearm with live cartridges and many property-related documents. He has been arrested in connection with a probe into a ponzi scam,” a CBI official told The Indian Express. 

The CBI alleges that Sahani and others misappropriated funds of a company called Sunmarg Welfare Organisation. Before arresting him, the agency searched his home. It had earlier arrested Burdwan municipality chairman Pranab Chatterjee in the case.