The Enforcement Directorate (ED) has arrested the Indian director of a Hong Kong-based company on money laundering charges linked to alleged multi-crore bank fraud “under the guise of” merchant trade, the agency said.

The ED case was booked after taking cognisance of a July, 2009 FIR of the Bengaluru police.

Under sections of the Prevention of Money Laundering Act (PMLA), Anup Nagaral, director of Hoewelai Jinsu, was arrested and a special court has sent him to judicial custody till January 17.

Nagaral was also arrested by the CBI in December last year in the same case.

(With inputs from PTI)