Pudukkottai, May 12 -- Tension prevailed in Pudukkottai after a functionary of the Tamilaga Vettri Kazhagam was arrested by the District Crime Branch police in connection with an alleged financial fraud involving more than Rs 25 crore collected from over 100 people under the pretext of offering high returns on investment, Tamil Nadu police said.

The accused, identified as Saravanan, belongs to the Thiruvappur area of Pudukkottai city and serves as a Central District Executive Committee Member of the party.

According to police sources, Saravanan had allegedly borrowed huge sums of money from prominent individuals and private lenders in and around Pudukkottai over the past several years. He is accused of collecting amounts ranging from Rs...