Daga, who was arrested yesterday, was produced before the court and the agency sought his remand, saying it needs to confront him with documents and intercepted conversations of the accused.
Special CBI Judge Swarana Kanta Sharma allowed the CBI's plea and remanded Daga in the agency's custody till May 22.
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The agency told the court that Daga, a regular railway contractor, had allegedly arranged part of the bribe amount which was paid to Bansal's nephew Vijay Singla for the posting of co-accused and then Member (Staff) of Railway Board Mahesh Kumar's posting as Member (Electrical) of Railway Board.
It also said that one of the accused Vivek Kumar, who had allegedly carried the bribe amount to Chandigarh and was caught red handed while handing it over to Singla, was Daga's employee.
CBI said another accused Narain Rao Manjunath, Managing Director of GG Tronics India Pvt Ltd, was the manufacturer of equipments which were supplied to the railways and Daga and two other accused, Rahul Yadav and Sameer Sandhir, were railway contractors.
A non-bailable warrant was also issued against Daga by the court on May 16 as he was avoiding arrest since lodging of FIR in the case.
During the day's proceedings, the court also extended the judicial custody of Singla and other eight arrested accused till June one.
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