A sponge iron unit was sealed on Sunday and its executive director Bhupendra Das arrested and remanded in judicial custody after it was established that the unit illegally procured and consumed iron ore.
Brahmani Tarang police said the arrest of Das came following two recent raids on the Maa Tarini Industry Ltd at Jiyabahal near Kalunga here.
The sponge iron plant owned by Hanuman Goel was found to be not maintaining proper records of iron ore procurement and other transactions. During the last raid on Friday, verification showed shortage of iron ore stock.
Police said further investigation is on and more arrests are likely.