The Anti-Corruption Commission yesterday arrested the managing director of Keya Yarn Mills Ltd in connection with a case filed over misappropriating Tk 111.14 crore of Bangladesh Krishi Bank (BKB).

Abdul Khaleq Pathan was arrested in the capital's Segunbagicha.

Pathan withdrew the money from Kawran Bazar branch of the bank and misappropriated it, ACC's Public Relations Officer Pranab Kumar Bhattacharya told The Daily Star.

The anti-graft body filed the case with Tejgaon Police Station yesterday accusing eight people including Pathan.

Other accused are Keya Yarn Mills Ltd's Chairman Khaleda Parvin, directors Masum Pathan and Tansin Keya, BKB's former senior principal officers Abul Hossain and Golam Rasul, and its former assistant general manager Sarwar Hossain and deputy general manager Jubair Manjur.

According to the case statement, Keya Yarn imports raw cotton, manufactures yarn and sells it to export-oriented garment factories.

Between 2009-2010 BKB issued a loan of Tk 111,14,65,031 to Keya Yarn for importing raw cotton.

In the inquiry, it is found that no raw cotton was imported with the money and the company did not even submit any document of selling cotton to garment factories, to the bank.

Even after that, the official of the BKB's Karwan Bazar branch continued issuing LC (letter of credit) to the company.

It appears that they collaboratively misappropriated the money which is a punishable offence, reads the FIR of the case.

It will be further investigated whether more persons were involved in it, it added.