BDO of Banjaria block Sanjeet Kumar was arrested following the direction of District Magistrate Vinay Kumar, they said.
An FIR was lodged against the BDO, Manager of Allahabad Bank branch and member of Banjaria block panchayat committee, they said.
They have been accused of taking a bribe of Rs 2,000 each from the beneficiaries of Indira Awas Yojna in January 2012.
A case has been registered against them on the basis of statement of senior Account officer Lal Kishore Ram, police added.