New Delhi: ED has arrested a manager of a Kotak Bank branch in connection with its money laundering probe in a criminal case of detection of nine alleged fake accounts with deposits worth Rs 34 crore post demonetisation.

Officials said the agency arrested the manager of the banks branch in the K G Marg area in the city, late on Tuesday night after questioning.

"The manager has been arrested under the provisions of the Prevention of Money Laundering Act and will be produced before the court for further custody," they said.

The Enforcement Directorate took on the case and registered an FIR under PMLA laws after taking cognisance of Delhi Polices crime branch FIR in the said case.

Police had also arrested two persons last week for allegedly depositing black money worth Rs 34 crore in nine fake accounts being operated in the Naya Bazar branch of the said bank.

A bank spokesperson had then said in a statement that it "confirms that it has a robust system of regularly and proactively filing necessary reports with the statutory authorities as prescribed by them, which include these accounts.

"The Bank denies that there were any fake accounts.The Bank is extending full cooperation to the investigating authorities," the spokesperson said.