Searches resulted in the seizure of "incriminating documents". Bank balances to the tune of Rs. 32 lakh and fixed deposits worth Rs. 11 lakh were seized and frozen.

The CBI on Tuesday arrested C. Rajan, Additional Director-General, Directorate of Revenue Intelligence, here on charges of taking bribe to do a favour.

According to a CBI press release, F. Ubaidullah of Pudupet lodged a complaint with the agency's Anti-Corruption Branch on March 5 alleging that the DRI had conducted a search on the premises of his friend Joseph where they found cheque leaves of Superking Myatzin, a Burmese national of Indian origin.

DRI officials took steps to freeze the bank account of Mr. Myatzin.

On a request from Joseph, the complainant approached Mr. Rajan seeking to defreeze the bank account. The official demanded a bribe Rs. 10 lakh and subsequently reduced it to Rs. 8 lakh and an iPad for not taking action against Mr. Myatzin under the COFEPOSA Act and for defreezing his bank account. He demanded that Rs. 2 lakh and the iPad, as first instalment, be handed over to his car driver Murugesan.

After conducting preliminary enquiries, the CBI registered a case under Section 120B (criminal conspiracy) of IPC and other provisions of the Prevention of Corruption Act, 1988. A special team was formed to lay a trap. As the team waited outside, Mr. Ubaidullah went to the house of Mr. Rajan in the Central Government Officers' Quarters on Haddows Road around 8 a.m. Murugesan asked him to come to the office of the DRI in T. Nagar at 4 p.m. When he went there, the driver told him come to a Roman Catholic Church at Mylapore. The complainant, who was closely followed by the CBI team and official witnesses, went there. Murugesan received Rs. 2 lakh and the iPad from Ubaidullah on the church premises and said that they would be handed over to Mr. Rajan.

CBI officials followed the car which picked up Mr. Rajan from his office and went to his residence. After ensuring that the packet containing the money and iPad was taken into the house, the team moved in and apprehended Mr. Rajan and his car driver. Phenolphthalein test conducted on the two gave positive results. The chemical-laced currency notes and the iPad were seized. The release said searches were conducted on the premises of Mr. Rajan, Murugesan and Peel Jamal, believed to be a conduit of Mr. Rajan. The searches resulted in the seizure of “incriminating documents”. Bank balances to the tune of Rs. 32 lakh and fixed deposits worth Rs. 11 lakh were seized and frozen.

The arrested persons were produced before a special judge and remanded in judicial custody till March 21. They were lodged in the Puzhal central prison.

Mr. Rajan has filed a bail application before a Special Court for CBI cases here.