"Agarwal was today arrested in the bomb suits case soon after his anticipatory bail was rejected by a Sessions court," Additional Police Commissioner (EOW) Rajvardhan Sinha told PTI.
The Economic Offences Wing (EOW) of the city police had registered a case against the company and Agarwal on May 13. The anticipatory bail application of Agarwal claimed that he was being implicated in the case at the behest of senior IPS officer P K Jain.
According to EOW officials, in January 2009, the state police floated the tender for purchase of the ensemble, post the 26/11 terror attacks as most of the suits used by various bomb detection and disposal squads (BDDS) units were outdated.
The bid was won by Techno Trade Impex India Pvt Ltd and an order for 80 suits was placed. In June 2009, the government paid about Rs six crore to the firm. However, when the suits were supplied in 2010, the government rejected them for not being in conformity with quality standards. Agarwal then moved the Bombay High Court in March, 2010 challenging the state government's decision.
Former principal secretary (Home) P K Jain, in an affidavit filed before the court, had claimed that Techno Trade acquired 36 bomb suits from South Africa and the remaining from China.
It was alleged that the protective gear imported from China was cheaper and of low quality, as compared to those imported from South Africa.
The 26/11 terror attack had exposed chinks in the armour of Mumbai Police in handling urban terrorism, involving sophisticated arms and ammunition.
As a part of the modernisation plan for its police force, the Maharashtra government has decided to provide better arms, equipment and protective gear like better quality bomb suits and bullet-proof jackets for the personnel.