The CBI arrested former Air Force Chief SP Tyagi over alleged irregularities in the AgustaWestland VVIP chopper deal worth 3,700 crores.He was arrested along with his cousin Sanjeev Tyagi and lawyer Gautam Khaitan after hours of questioning.
Tyagi, who retired in 2007, was questioned by the CBI extensively in the past in this case.
All the 3 have been arrested on the allegations of accepting illegal gratification for exercising influence through corrupt and or illegal means, the CBI said.
The former air chief has been accused of abusing his official position by corrupt means.
This is the first high-profile arrest made by acting CBI chief Rakesh Asthana, who is in the headlines because of a row between the government and the opposition over his appointment a week ago.
Asthana was given charge of the chopper deal investigation earlier this year.
On January 1, 2014, India had scrapped the contract with Finmeccanica's British subsidiary AgustaWestland for supplying 12 AW-101 VVIP choppers to the IAF over alleged breach of contractual obligations and charges of paying kickbacks of Rs 423 crore by it for securing the deal.
The CBI in the initial investigations into the AgustaWestland scam had found that former IAF chief SP Tyagi was indeed bribed by middlemen+ around the same time - 2004-2005 - that his cousins were given money, highly placed sources said.
The CBI was looking into former IAF chief's investments in property and banks, especially after 2004-05, to ascertain the money trail in the VVIP helicopter scam.
It had got Letters Rogatory (judicial requests) issued to multiple countries to gather more leads and evidences in this case.
Sources said the agency had identified the alleged 'briber giver' (AgustaWestland), bribe takers (cousins of S P Tyagi), middlemen (Guido Haschke and Carlo Gerosa), bribe amount and to some extent the bribe route. It is now looking to establish where the money went after reaching Tyagi's cousins (Julie, Docsa and Sandeep).
The Enforcement Directorate had in April this year summoned Tyagi in connection with its money-laundering probe in the Rs 3,600 crore .