Mudaliar had allegedly siphoned off Rs 1.20 crore of the trust fund through his account in the Andheri branch of Allahabad Bank. The money was transferred to Mudaliar's account named D M Films from the joint current account of Nand Kumar Palav, the prime accused in the scam.

Mudaliar had been evading arrest since December last year and kept on dodging the sleuths from the general branch. Mudaliar remained so arrogant that he even refused to meet the investigating officer in the case and answer the question. In the meanwhile, twice assistant police inspector Pradhan received calls from the personal secretaries of Munde including Daund and Manek Munde exerting pressure on the police to let off Mudaliar, states the remandapplication of Mudaliar.

Palav who had allegedly embezzled over Rs 13.74 crores from the trust fund along with Vijay Kumar Mutha himself had been arrested twice so far and released on bail by the police. After his second arrest by the police on December 11, last year, Palav had admitted to the police that he actually diverted the trust money to Mudaliar's account.

Following which the police summoned Mudaliar to head office for inquiry. However, Mudaliar made excuses and did not show up. Police sent three notices to the bar owner and every time he refused to see the police. Finally on April 7, when he went to the general branch office, the officer got a call from Manek Munde, the personal secretary of the Munde.

Mudaliar is the seventh accused in the scam case. So far the police had the chairman of the trust and owner of Kanga and Kanga solicitors, Ismail Kanga, his secretary, Gangadhar Kudalkar, Palav, Mutha and Sujeet Jadhav.

The scam has rocked the state as it was charitable trust set-up by theformer chief minister of Maharashtra, A R Antulay.