India, Aug. 26 -- The Mumbai zonal unit of the enforcement directorate (ED) on Sunday arrested businessman Amit Thepade as part of its money-laundering probe related to an alleged Rs.117.06-crore fraud in Canara Bank. The accused had allegedly defrauded the public sector bank by availing of loans and mortgaging properties that had either been sold or already mortgaged. The loans were acquired via two of his firms and subsequently diverted for personal use, said ED officials.

Thepade, who had allegedly been evading the authorities for some time, was arrested after intelligence inputs led the ED to a five-star hotel in South Mumbai where he had been staying for the past two months. Searches conducted at the hotel premises led to the freezi...