New Delhi, July 30 : Raj Singh Gehlot, Chairman of the Ambience Group of Companies who has been arrested by the Enforcement Directorate (ED), siphoned off a loan amount by diverting the funds for other purposes, such as to settle the loans of other group firms, making Fixed Deposits, as well as diversion of materials to other projects of the Ambience Group. The ED probe also found that he had diverted Rs 469 crore to entities and individuals, controlled by him and for which he is the authorised signatory. Gehlot was arrested by the ED on late Wednesday and produced before a PMLA court via video conferencing. He was sent to ED custody by the court for seven days. An ED official related to probe said that during the money laundering probe it was found that Gehlot entered into a criminal conspiracy to fraudulently siphon off the loan amount by diverting the funds for other purposes. "An amount of Rs 469 crore was found to be diverted to entities and individuals, controlled by Gehlot and for which he is the authorised signatory," he said.A The official said that during the course of investigation, Gehlot had mislead the ED and continuously tried to show that he did not make any diversion of the sanctioned loans. "Whereas the documentary evidences collected during the search revealed that the submissions made by Gehlot were false and misleading," he said. The ED had registered a money laundering case on the basis of an FIR filed by the Anti-Corruption Bureau, Jammu and Kashmir Police, against officers of the J&K Bank and others in respect of loan sanctioned to Aman Hospitality Pvt Ltd (AHPL). The ED said that AHPL had taken a loan amount of Rs 810 crore from a consortium of banks led by J&K Bank. The ED official further said that the loan was sanctioned for the purpose of construction and development of a five-star hotel at CBD, Shahdara in New Delhi. The loan amount along with interest totaling to the tune of Rs 902 crore has been declared as NPA, he added. /IANS