Senior Indian bureaucrat arrested in land scandal

Jan 31, 2012, 8:16 GMT

New Delhi - A top bureaucrat was arrested in the southern Indian city of Hyderabad for alleged financial irregularities linked to a real estate development by Dubai-based Emaar Properties PJSC, news reports said Tuesday.

BP Acharya, home secretary of Andhra Pradesh state, was arrested by federal investigators Monday. He was managing director of the state-run Andhra Pradesh Industrial Development Corp from 2005 to 2010 when it entered a joint venture with Emaar to develop luxury villas on the outskirts of Hyderabad.

Acharya was charged with criminal conspiracy, breach of trust, misappropriation of government property and cheating.

Central Bureau of Investigation officials accused Acharya of involvement in reducing the state-run corporation's stake in the joint venture, causing huge losses to the corporation.

Three others were arrested earlier in connection with the case. Acharya said he did nothing wrong.

His arrest came after a slew of financial scandals over the past two years involving government officials. They included a telecommunications licenses sale dating back to 2008 that has seen the arrest of 14 people, including a former minister and a retired bureaucrat.

An anti-corruption bill to check graft among government officials has been passed by the lower house of India's Parliament but has yet to be passed by the upper house.