Patna: The vigilance investigation bureau on Tuesday arrested Sharad Kumar Jha, the director of a private company called IIM, in Patna in connection with the SC/ST scholarship scandal in which suspended IAS officer S.M. Raju and retired IAS officer K.P. Ramaiah are also accused.

This is the first arrest in the scandal. Jha is alleged to have taken money without providing study material to students under the Mahadalit Vikas Mission. Jha was produced before special vigilance court of Madhukar Kumar on Tuesday from where he was sent to 14 days judicial custody.

Earlier, the anticipatory bails of Raju and Ramaiah were rejected by the Patna High Court. Both are evading arrest. On November 29, 2016, an FIR was lodged against Raju and 15 others on the state government's directive. They have been accused of committing irregularities in the disbursement of post-matriculation scholarship to SC/ST students pursuing technical education outside Bihar during 2013-14 and earlier.

Vigilance sources said in some cases money was transferred to institutions even after students had left them and to institutions without any student.

Special vigilance judge Madhukar Kumar had earlier rejected suspended IAS officer S.M. Raju's anticipatory bail plea on finding him guilty of causing a loss of Rs 3.28 crore to the state exchequer by giving rights to two agencies for executing schemes under the Mahadalit Vikas Mission.

Under the scheme Mahadalits were to be trained and given certificates so that they could get jobs. The scheme was launched in 2007, but training began only in 2010.