India's federal investigative agency says it has arrested an opposition national lawmaker for allegedly stealing funds from a multibillion-dollar Ponzi scheme that collapsed in eastern India.

The scam left hundreds of thousands of investors penniless.

The agency says Srinjoy Bose was arrested Friday on charges of criminal conspiracy, stealing funds and deriving undue financial benefits.

Bose belongs to the All India Trinamool Congress, the governing party in West Bengal state but an opposition party at the federal level.

The scheme was run by the Saradha Group, a state-based consortium of private companies running collective investment schemes. It allegedly collected around 300 billion rupees ($4 billion) from over 1.7 million depositors before it collapsed in April 2013.

Corruption is endemic in India.