City-based industrialist L.N. Bangur has been arrested on charges of a financial fraud amounting to Rs 45 lakh. A team from Golabari police station, Howrah, picked up Bangur on Sunday morning.

Later in the day, he was produced before the chief judicial magistrate (CJM) of Howrah and granted bail.

Bangur, who owns Andhra Pradesh Paper Mills, was arrested on the basis of a complaint filed by Manish Agarwal, director of Amicus Steel India Ltd.

Agarwal had lodged a complaint with Golabari police station against Bangur on April 20, 2006, alleging that the industrialist had cheated him of Rs 45 lakh by signing a false agreement.

Agarwal had also appealed to CJM, Howrah, to start a case against Bangur.

Armed with the court order, police started probing the case. “Prima facie, we have found that the allegation against him (Bangur) was true,” said an officer of Golabari police station.

No member of the Bangur family was available for comments. But a close family friend said: “The incident is really unfortunate, but we are happy that he got bail.”

According to police, Bangur entered into an agreement with Agarwal to sell off a factory at Garulia, in North 24-Parganas.

“But when the employees of Amicus Steel India Ltd went to take possession of the mill and its machinery, they came to know that the plant was mortgaged as security deposit with the Industrial Finance Corporation of India. The company alleged that Bangur had suppressed the fact,” said the officer.

The investigating officers of Golabari police station have claimed that after tracking Bangur’s bank transactions, they have found that Bangur had received Rs 35 lakh in bank draft and Rs 10 lakh in cheque from Agarwal’s company.

“But the investigation is not complete… Bangur will have to appear before us every day. We will have to question him for more details,” said an officer.