The Central Bureau of Investigation on Saturday night made its second arrest in relation to the multi-crore Saradha scam.
City-based businessman Sandhir Agarwal was arrested by the investigating agency following an eight-hour intereogation.
The first arrest, made earlier this week, was that of Debabrata Agarwal - an official of the East Bengal Football Club.
Sandhir's arrest came late on Saturday night, around 10.30 PM, CBI sources said.
Sandhir and his father, Sajjan Agarwal's name feature in the a letter written to the CBI by Saradha Group chairman, Sudipta Sen before his arrest in April 2013.
Sen has named the two along with Debabrata Sarkar as the people who had been extorting money from him citing proximity to market regulators.
Sarkar, the arrested East Bengal club official, is learnt to be the link man between Sen and the Agarwals.
The Saradha Group which was involved in various ponzi and money collection schemes went bust in April last year. Thousands were duped through these schemes.
The Group had mobilised deposits worth a few thousand crore through its operations in West Bengal, Bihar, Odisha, Assam and Tripura.
Group Chairman, Sudipta Sen, was arrested later in April 2013, by the West Bengal police from Kashmir.
Apart from Sen, the other high profile arrest so far has been that of suspended Trinamool Congress MP (Rajya Sabha), Kunal Ghosh. Ghosh used to head the media ventures of the Group.
The Enforcement Directorate (ED) is also carrying out a parallel probe on the issue of money laundering in the Saradha Scam.