PTI

Mumbai, Dec 3: Gangster-turned-politician Arun Gawli was arrested on Saturday in connection with a breach of trust case for allegedly siphoning off Rs 85 lakh.

Gawli, who was summoned for questioning by the Economic Offences Wing for the case filed against him by a builder, was placed under arrest immediately after he "admitted" his involvement in siphoning off the funds, police officials said.

"A total of 469 workers of Neptune Construction Ltd had given power of attorney to Gawli, who is president of the Akhil Bharatiya Kamgar Sena (ABKS), to collect their dues like provident fund payments and gratuity amount," Additional Commissioner of Police (EOW) Sadanand Date said.

The owner of the firm gave Rs four crore to be deposited in ABKS' current account in Bank of Baroda's Jacob Circle branch in May 2004.

Gawli, the MLA from Chinchpokli constituency, was called in for questioning today at a police office in Agripada, close to his residence at Dagdi Chawl, and arrested after he reportedly admitted he had siphoned off Rs 85 lakh from this amount, police said.

"During the questioning, he admitted he had used Rs 50 lakh in the Shivshambhu Trust floated by him and Rs 35 lakh for funding his party activities," Date alleged.

Gawli was booked under Sections 403 (dishonest misappropriation of property), 406 (criminal breach of trust) and 34 read with 120(b) (criminal conspiracy) of the IPC.

ABKS is the labour arm of the Akhil Bharatiya Sena, the political party formed by Gawli after he completed an externment term in 1996.

The party had its first electoral success after Sunil Ghate was elected a corporator in 2002, and this was followed by Gawli's entry into the state legislature in 2004.