The prime suspect, Colonel A. K. Barua who retired three months ago, has named Brig. Sharma in connection with the training funds.
Top NCC officials in Delhi said two sets of Court of Inquiries into the case amid starting revelations of involvement of many more senior officials in pocketing several crores had the NCC headquarters rattled.
After preliminary investigations by agencies revealed a bigger scam, the CBI and Meghalaya CID have begun collecting information.
The scam is estimated to be over Rs 50 crore in the past 10 years, the officials said.
NCC is an organisation, comprising the army, navy and air force, engaged in grooming the youth of India into disciplined and patriotic citizens.
It was created in 1917 with an object to make up the shortage of the defence services.