New Delhi: Two co-founders of the private institution Ashoka University are among three people arrested by the Enforcement Directorate (ED) for alleged money laundering, media reported, citing sources.

The two Ashoka University co-founders, Pranav Gupta and Vineet Gupta, and chartered accountant SK Bansal were arrested by the central agency under the Prevention of Money Laundering Act, or PMLA, reported NDTV.

The arrests came after the ED searched 17 locations in the alleged bank fraud case involving Parabolic Drugs Ltd, promoted by Pranav Gupta and Vineet Gupta.

The Central Bureau of Investigation (CBI) had charged Parabolic Drugs for alleged bank fraud amounting to Rs 1,600 crore, said the report.

The ED started its probe based on the first information report by the CBI.

The Guptas, who co-founded Haryana-based Ashoka University, stepped down from their posts in the institute in 2022 after the CBI filed the case against them and their company in 2021.

The three are likely to be produced before a court in Chandigarh, where the ED will seek their custody.

The promoters and the pharma company allegedly defrauded a consortium led by the Central Bank of India of Rs 1,626 crore.