The other three arrested include Kavi Arora, Anil Saxena and former CEO of Religare and chief executive Sunil Godahwani.
"The RFL noticed a change in management. When the new management took over, they found it was a loan, but the money was invested in other companies related to Singh and his brother. They appealed to EOW and subsequently the FIR was registered," said a senior police officer. .
Apparently, Zwinder also dragged his older brother Malvinder Singh and Godwani to court for "doing poorly" in family businesses.
In August this year
The Office of Enforcement (ED) raided
+ premises associated with the original promoters of Ranbaks, Malwinder and Zwinder, regarding the money laundering case.
Central agency officials said the raids were conducted following a case under the Anti-Money Laundering Act (PMLA).
The action was taken amid allegations of financial irregularities against the Singh brothers and the subsequent collapse of their business.
Zwinder's brother, Malwinder, is disappointed and a circular examination has been issued against him.
(With PTI inputs)