They are accused of conspiring to settle in the Supreme Court a case of a Lucknow-based medical institute that was barred by the government from admitting students.

The CBI on Thursday arrested five persons, including retired Orissa High Court Judge I.M. Quddusi on corruption charge.

The premier investigating agency has accused them of conspiring to settle in the Supreme Court a case of a Lucknow-based medical institute that was barred by the government from admitting students.

The other arrested are B.P. Yadav, Palash, alleged middleman Vishwanath Agarwala and "hawala operator" Ram Dev Saraswat. They will be produced before a city court.

The CBI was said to have seized ₹1 crore in cash from the middleman and ₹91 lakh more during searches on Wednesday.

Prasad Institute of Medical Science of Prasad Education Trust was one of the 46 colleges barred by the government from admitting students for one to two years for non-fulfilment of set criteria.

It is alleged that Yadav and Palash conspired with Justice (retd.) Quddusi, one Bhawana Pandey and others to get the issue resolved in the Trust's favour.

They met Justice (retd.) Quddusi and Ms. Pandey through Sudhir Giri of Venkateshwara Medical College in Meerut, says the CBI's First information Report.

The accused wanted relief from the August 10 Government Order, which debarred the college from admitting students for two years. It had also authorised the Medical Council of India (MCI) to encash the bank guarantee of ₹2 crore.

The Trust initially approached the Supreme Court against the order, withdrew it purportedly on Justice (retd.) Quddusi's advice and filed a petition in the Allahabad High Court.

The High Court directed that the college not be struck off the list of institutions notified for counselling till August 31, the next date of hearing. An interim stay on encashment of bank guarantee was also given. However, the college was not allowed to admit students.

The MCI contested the High Court order in the Supreme Court. That petition was disposed of on August 29, as the other side did not claim any benefit from the order.

Subsequently, the Trust filed a writ petition in the Supreme Court and Justice (retd.). Quddusi and Ms. Pandey allegedly assured the Trust representatives that the matter would be settled in the Supreme Court through their contacts.

They engaged Biswanath Agrawala, a resident of Bhubaneswar, who allegedly claimed that he had close contacts with the relevant senior public functionaries and assured them that he would get the issue resolved in the Trust’s favour. He had allegedly demanded huge gratification for inducing the public servants concerned, alleges the CBI.