India, July 27 -- The investigation against Harsha Vardhan Jain, who has been arrested by the Uttar Pradesh Anti-Terrorism Squad (ATS) for running a fake embassy in Ghaziabad, has revealed potential links to a Rs.300 crore scam.

During the raid on Jain's fake embassy in Ghaziabad's Kavi Nagar, police recovered pictures of him with controversial "godman" Chandraswami and Saudi arms dealer Adnan Khashoggi.

Chandraswami gained prominence in the 80s and 90s and was considered to be the spiritual adviser of three former prime ministers - PV Narasimha Rao, Chandra Shekhar and VP Singh.

However, he was arrested in 1996 in connection with financial irregularities. He was also accused of funding the assassination of Rajiv Gandhi.

A raid at his...