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The minister was arrested under the Prevention of Money Laundering Act in the early hours of Friday following over 17 to 18 hours of questioning, they said.
He will be produced before a local court where the ED will seek his custody.
The central agency had launched searches at Mallick’s premises on Thursday. It also searched his ancestral house on Amherst Street in central Kolkata. The alleged scam pertains to reported irregularities in the public distribution system and in distribution of food grains during the Covid lockdowns.