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The former general manager of Construction and Design Services (C and DS), was called to the CBI headquarters this morning and was placed under arrest this afternoon.
He was later taken to a designated court in Ghaziabad. The CBI had registered a case against Jain on January 2 for allegedly causing a loss of Rs 5.46 crore in renovating 134 district hospitals.
The CBI alleged that Rs 13.4 crore was given to Construction and Design Services, a unit of UP Jal Nigam, for the upgradation work.
It alleged the work was sub-let to a Ghaziabad-based firm on the basis of bogus and forged documents.
“The material installed in hospitals were found to be of inferior and sub-standard quality thereby causing an approximate loss of Rs 5.46 crore to the exchequer,” the CBI alleged.
It claimed to have recovered three kgs of gold and cash of Rs 1.10 crore besides some important documents during search operations at Jain's residence yesterday.
The CBI summoned several officials of Uttar Pradesh for questioning in connection with alleged irregularities in spending Rs 10,000 crore allocated under the centrally-sponsored NRHM.
Besides Jain, former director general of Family Welfare Department S P Ram was among senior officials called for questioning, sources said.
The interrogation came a day after the agency carried out inter-state searches at about 60 locations, including at the residence of former Uttar Pradesh minister Babu Singh Kushwaha, to probe alleged irregularities.
The agency had registered five cases on January 2 against certain government and private sector officials, including one against Kushwaha alleging loss of about Rs 28 crore in implementing the centrally-sponsored scheme meant for 72 districts of Uttar Pradesh.
Kushwaha, a BSP OBC leader of the state, was sacked by Mayawati and expelled from the party last November following his alleged involvement in the multi-crore scam. He was inducted in the BJP two days ago.
NRHM funds of nearly Rs 10,000 crore were allocated to Uttar Pradesh for the period 2005-06 till date by the Union Health and Family Welfare Ministry.
Jain was produced before the designated court of A K Singh in Ghaziabad and was remanded in CBI custody for nine days.
The CBI had sought permission of the court for custodial questioning of the accused for 14 days but the judge allowed his custody only till January 13. Jain's medical check-up was done before he was sent to CBI custody.


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The National Rural Health Mission may be having hardly 40 to 50 Bureaucrats they may have been divided the ongoing 10,000 cr. evenly 200 cr. each and every player of this game. They should be caught and prosecuted immediately with out further delay. Their wealth should be confiscated and should not allow further participation in any political activities, such rules of law must be implemented or amended accordingly to control such criminals now and for future, the responsible and legitimate authority to do that is the Govt., legislator´s. They are empowered by the people of the country those who are voted and sent them to parliament to make the new laws under the bound of the present democracy, otherwise all these crime and corruption could not be tackled with, by the Govt.,even, take it serious and do something to make good and better democracy in our country. Or, it is impossible to make and amendment new laws as the black money,which is propagated overall world with fake agreement.