Mumbai (PTI): Police sub-inspector and 'encounter specialist' Daya Nayak, who was under suspension for nearly six-and-a-half years in a disproportionate assets case, was on Saturday reinstated and posted in a local arms wing of the department, police said.

Soon after receiving the order of reinstatement, Nayak took charge Saturday itself.
He had been suspended from the service in January 2006 and was arrested by the Maharashtra Anti Corruption Bureau after a court rejected his anticipatory bail plea in the case.

In October 2009, the then director-general of police SS Virk had denied permission to prosecute Nayak in the case with a remark that there were insufficient grounds and cleared him of all charges. Later, his file had been sent to the ACB. This had paved a way for his reinstatement in the force.

"Subsequently, the magistrate of the court concerned was informed that the case does not stand against Nayak. Hence there is no case against him now. So, he is eligible for the reinstatement. The city police commissioner passed an order for his reinstatement and Nayak is now posted at Local Arms wing," an IPS officer told PTI.

A 1995-batch police officer, Nayak had got actor Amitabh Bachchan to inaugurate his school in Karnataka in memory of his mother nearly seven years ago.

The ACB had also arrested his two friends, who lent their names to the transfer of his wealth. The ACB also sought to arrest Nayak's wife Komal.