SIT officials, while tracking the movement of money in fake accounts from the board, found that Satyanarayan Verma, who was arrested in the case, had paid Rs 3.3 crore to a luxury car dealer.

SIT officials traced the car, seized it and returned it to the dealer. Sources said they also recovered the money.

According to sources, Satyanarayan Verma, named as accused number 13, had made allegations against the Criminal Investigation Department (CID) in a presentation before the court.

He alleged that CID is protecting the culprits and the officers are under pressure.

Satyanarayan Verma also told the court that the authorities did not inform his family for four days after his arrest.

He requested the court to allow him to give his statement confidentially in the absence of CID officers.

Sources revealed that this plea was given when the CID produced him in the court.

State BJP president BY Vijayendra had said that Satyanarayan Verma had told the court that he was being threatened by people close to former minister Nagendra.

Vijayendra claimed, "This is a serious allegation. However, till date the SIT has not dared to interrogate former minister Nagendra."

The irregularities came to light after the suicide of senior board official Chandrasekaran, who had left a note mentioning the role of a minister.

At present SIT, CBI and ED are investigating the case and on Friday morning ED arrested former minister B Nagendra.