The CID has arrested the director of TGS Group company from Uttar Pradesh on Wednesday in connection with the 657-crore scam involving the real estate firm.
Jaswant Singh was produced before a magistrate and remanded in judicial custody.
He is one of the two sons of an ex-army officer Harjeet Singh.
The Madiwala police had registered a case over the multi-crore scam involving real estate and Bollywood movie productions.
The case was then taken over by CID as the scam grew larger with more complainants forthcoming.