Bureaucrat Bheema Naik was arrested on Sunday, a week after his driver committed suicide.
Karnataka bureaucrat Bheema Naik - who was named in his driver's suicide note, which also alleged that he helped tycoon and former minister Janardhana Reddy launder money - has been suspended by the Karnataka government.
Mr Naik was arrested on Sunday, a week after his driver Ramesh Gowda killed himself in Mandya district.
In a long, hand-written suicide note, Ramesh Gowda had listed allegations against Bheema Naik - a land acquisition officer with the Karnataka government.
The suicide note said Bheema Naik was involved in many corrupt deals, including the laundering of black money - which was later used to fund the wedding of the daughter of Janardhana Reddy, which made international headlines. The note said he helped Mr Nayak kept a 20 per cent commission on the Rs 100 crore, which he helped convert into new notes. Ramesh Gowda had also mentioned that his life was under threat for knowing about the corrupt deals.
Along with Bheema Naik, his current driver Mohammed was also named in the suicide note. He has been arrested too.A case of abetment to suicide had been filed against them. Investigations are on into the allegations made against Bheema Naik.
Karnataka is governed by the Congress. Janardhana Reddy - a minister in the earlier BJP government headed by BS Yeddyurappa - was removed after corruption charges in 2011. Accused of illegal acts in connection with iron ore mining in his home district Ballari, he is currently out on bail.
The wedding of his daughter Brahmani - which took place in the days following the government's ban on Rs 500 and Rs 1000 notes and the resulting cash crunch -- had raised questions about its funding.
The estimated cost of the wedding - the site of which was decorated with replicas of famous temples - varied from Rs 30 crore to Rs 500 crore.
The matter was raised in parliament by politicians who asked how Mr Reddy was able to make legitimate payments in the middle of the crippling cash crunch which has followed the ban on high denomination currency by the government.
Later, Income Tax officials had visited Janardhana Reddy's homes and offices and presented him with a lengthy questionnaire.