The Central Bureau of Investigation (CBI) on Saturday arrested Kolkata businessman Sandhir Agarwal in connection with the multi-crore rupee Saradha scam, an official said.

"Following interrogation, Sandhir Agarwal has been arrested. He will be presented before a court on Sunday," a CBI spokesperson said.

This is the second arrest made by the CBI in a week after it took over the investigation of the scam in West Bengal following a Supreme Court order in May.

The agency had on Wednesday arrested East Bengal Football Club official Debabrata Sarkar.

Scam kingpin Sudipta Sen in his April 2013 letter to the CBI had alleged Sarkar and his accomplices including Agarwal, of extorting over Rs. 40 crore from him, to cover up a probe then being conducted by market regulator SEBI.

During the day, the agency grilled retired IPS officer Rajat Majumdar for nearly seven hours. Besides the former director general of the state armed police, Sen and Amrin Ara – a former accountant of the company were also interrogated.