Development comes three weeks after the arrest of Trinamool Rajya Sabha MP Srinjoy Bose.

The Central Bureau of Investigation on Friday arrested West Bengal Transport Minister and senior Trinamool Congress leader Madan Mitra for “cheating and misappropriation of funds” in connection with the multicrore Saradha scam. He is the first Minister in the Mamata Banerjee Cabinet to be arrested in the scam.

“Madan Mitra was arrested on prima facie evidence of criminal conspiracy, cheating and misappropriation as well as deriving undue financial benefits from the Saradha group,” a senior CBI official told The Hindu.

The official said the arrest came in connection with a case registered against Saradha Realty, a company with investments in the housing sector. In the same case, the CBI arrested Naresh Bhalotia, legal adviser to Saradha group chief Sudipta Sen, on similar charges.

On Friday, Mr. Mitra appeared at the CBI office in Salt Lake around 11 a.m. He was arrested at around 4 p.m by CBI officers as he allegedly could not answer many questions regarding his association with the Saradha Group.

Other than the allegations of pressuring Saradha chief Sudipta Sen, Mr. Mitra had publicly endorsed the Ponzi scheme company couple of years ago. Mr. Mitra had admitted taking money from the Saradha chief for constructing a temple in his constituency.