Bhubaneswar, June 6: Police today arrested the vice-chairman of a Hyderabad-based media house from a star hotel in the city.

P.K. Iyer, 45, was taken into custody for his alleged involvement in a Rs 358-crore bank loan fraud case two years ago.

Acting on an intelligence tip-off, the police nabbed Iyer from the hotel, where he had been staying for the past three months in a room booked by the name of a woman. The police said that when they raided the hotel in the early hours, they did not find any woman in the room. Iyer was arrested and subjected to interrogation.

Deputy commissioner of police Satyabrata Bhoi said: "The local CBI office as well as its counterpart in Bangalore were informed about the arrest. The police said a non-bailable warrant had been issued against Iyer."

Police commissioner R.P. Sharma said they had got inputs from the intelligence wing of the state police that a suspect was hiding in a city hotel. "Our team raided the hotel, and on extensive questioning, we came to know that he is being sought after by the CBI in connection with a bank fraud. We took him into custody and handed him over to the CBI officials here," said Sharma.

Iyer was later taken for a medical examination before being produced before a CBI court. The CBI officials from Bangalore will arrive here tomorrow and take him on remand. In February, the sleuths had nabbed the chairman of the company.

In February 2013, a case had been registered against the promoters of the media house for criminal conspiracy, cheating and forgery, following a complaint filed by a nationalised bank in Hyderabad.

Sources said that during 2009-2011, the accused had availed themselves of loans from the bank by allegedly giving false financial statements and hiding their loan statements from other banks. The lender bank had claimed a loss of Rs 357.77 crore on account of the alleged fraud, committed by the media house.