The Central Bureau of Investigation had registered a case on June 30, based on the complaint of PNB's branch manager at Kamala Nagar, Agra, K.C. Bansal. He alleged that there was a criminal conspiracy between former PNB manager Nayyar -- who was subsequently suspended -- and Gupta, who is also president of the Nirogi Charitable and Research Trust. The complainant alleged that the two conspired to forge and falsify accounts during 1997-98.

According to the CBI, Nayyar ``dishonestly deposited Rs 2,14,84,692 in the PNB branch at Barakhamba Road''. On April 27, Nayyar allegedly made false entries in the bank books, created a bogus account in the name of Nirogi Trust and issued various demand drafts totalling Rs 85,00,000. These were made out in favour of several private parties on the basis of draft applications signed by Gupta.

Gupta was arrested on July 3. As his police remand ended today, he was produced in the court of Special CBI Judge Ajit Bharihoke. The CBI counsel pleaded that the remand be extended as they needed more time to go through the large number of seized documents. The judge has extended his remand to July 15. He will be taken to Agra to locate and identify the other people involved.