CBI on Wednesday arrested two persons in connection with the multi-million-rupee Madhavpura Mercantile Co-operative Bank scam in Mumbai, in which 'big bull' Ketan Parekh is the main accused.

The two -- Shirish Manyar and Mukesh Babu -- were arrested by the CBI sleuths in Mumbai. They were produced before the Special Magistrate, who remanded them to CBI custody for two days.

While Manyar runs SBM Investments, Babu is the owner of Mukesh Babu Securities.

The CBI alleged that Babu, through his five accounts with Madhavpura Mercantile Co-operative Bank, had illegally borrowed and diverted funds to the tune of Rs 205 crore (Rs 2.05 billion).

Similarly, Manyar had also illegally diverted the funds of the bank to the tune of 25 crore (Rs 250 million) by allegedly entering into a criminal conspiracy with Rameshchandra Parekh, chairman of the bank, and Ketan Parekh.

The CBI has already arrested Ketan Paresh, Rameshchandra Parekh, Devendra Pandya, Vinit Parekh and Yogesh Mehta in the case registered in May 2001.

The spokesman said the case was in its final stages and a chargesheet would be filed soon.

The scam rocked the Madhavpura Mercantile Co-operative Bank following which the Reserve Bank of India had to appoint an administrator to run the bank.