India, March 22 -- Harsatinder Pal Singh Hayer, the son-in-law of the late Nirmal Singh Bhangoo, owner of the Pearls Group, was arrested on Friday under the Prevention of Money Laundering Act (PMLA) for his alleged role in a Ponzi scheme involving over Rs.48,000 crore, police said.

After Bhangoo was arrested by the Central Bureau of Investigation (CBI) in 2016, Hayer, his wife Barinder Kaur and mother-in-law Prem Kaur looked after the business. They formed new firms, the directors of which were their relatives, servants and drivers. Bhangoo passed away in August last year in Delhi.

Punjab Agro Company Limited (PACL), a subsidiary of the Pearls Group, and Bhangoo, had allegedly cheated 55 million investors through a network of 2.3 millio...