Jamshedpur, Aug. 28: Loyola School, one of the most famous addresses in the steel city, has been sucked into a controversy with police today arresting an employee for allegedly duping parents by promising them admission in lieu of ?donation?.

On the basis of a First Information Report lodged by Amit Kumar, a businessman from Patna, the Bistupur police arrested L.D. Gama, the private secretary to the principal, and registered a case under Sections 420, 406 and 138 of the Negotiable Instrument Act against the principal, Father Augustine Vattamattam.

Kumar, in his FIR, said his son, Raunit Raj, had appeared in the entrance test for admission to KG at Loyola School on January 9. Two days later, he got a call from the vice-principal?s office stating that Raunit had fared well in the test but he would have to come for further discussions.

The businessman duly went to the vice-principal?s office where he met Gama, the private secretary to the principal. Gama then allegedly asked Kumar to pay Rs 1 lakh as donation and claimed it to be an order of the principal.

Kumar claims in his complaint that he requested Gama to scale down the amount. Gama, he says, agreed to bring down the sum to Rs 50,000 and asked Kumar to pay Rs 20,000 immediately, which the businessman did so in cash. No receipt was issued against the payment and the explanation offered was that it would be given after admission.

When he raised the point of admission, Kumar says, Gama reportedly told him it would be done only after the summer vacation, as a result of which Kumar, along with his son, decided to go back to Patna. After the holidays, Kumar approached Gama, who, in turn, asked him to deposit Rs 7,250 for admission and also told him to send his son for classes. But later, she informed Kumar that admission was not possible.

Kumar asked Gama to refund the amount, but the school staff allegedly misbehaved with him. Gama allegedly told Kumar that the entire amount had been kept by the principal.

After repeated requests, Gama, on August 25, issued a cheque for Rs 27,250 drawn on Oriental Bank of Commerce to Kumar, but the cheque was dishonoured due to insufficient funds.

Sub-inspector Ravindra Kumar Singh of the Bistupur police station, who is also the investigating officer, said the matter is just the tip of an ice-berg. Gama, he said, in connivance with other officials, has duped many persons seeking admission.

Father Vattamattam could not be contacted. Singh said the police had raided the residential premises of the principal, but he could not be traced.

Gama, who is in police custody, said: ?I am the private secretary to the principal, but I will not say anything on the matter.? Gama was remanded in judicial custody later in the evening. No other official of the school could be contacted.