Patanjali had allegedly financed others involved in the scam to file thousands of fraudulent applications for flats in the housing scheme.

Deepak Kumar, the second arrest in the case, had earlier told investigators that he spilt the beans following a dispute with others over sharing money. Investigators today said Patanjali has revealed that he and Suresh Kumar Meena, another accused still on the run, fell out with former DDA employee M L Gautam when asked to share the booty.

An officer who is part of the investigating team said Deepak Kumar was in constant touch with all three, but did not tell Patanjali and Meena that Gautam, too, was part of the scam and that they would all have to share the riches. “Patanjali and Suresh Meena knew only Deepak, not Gautam,” the officer said. “They fell out with both Deepak and Gautam after being told about the former DDA employee.”

The source said Deepak planned the fraud and had decided along with Patanjali and Meena that they would pay for the applications and then share the money got from selling the allotted flats among themselves. But Gautam, who allegedly helped get fraudulent applications from Bulandshahar and other places in Uttar Pradesh, was also made part of the racket, sources said.

The source said Patanjali told the police during interrogation that he knew Meena for a long time. Patanjali reportedly tried his hands at selling both surgical goods and vegetable products but failing on both fronts he joined hands with Suresh Kumar Meena and began a taxi-service business. The two later met Deepak Kumar, a real estate agent, and became part of the racket, looking to get DDA flats allotted on dubious applications at reasonable rates and then make a killing by selling them further.

A Shalimar Bagh resident, Patanjali is one of 18 financiers named by Gautam. His role in the plot emerged after the Economic Offenses Wing raided his Shalimar Bagh residence following Deepak and Gautam’s interrogation. Sources said Patanjali has a case registered against him at Jahangirpuri police station for dishonestly receiving stolen property (under Section 411 of IPC).