Alemao, who was minister in the previous Congress Government led by Digambar Kamat, was taken into custody from Agassaim village in South Goa around midnight. His bail petition would be heard by the District and Sessions Court tomorrow.
Goa Police claimed to have "clinching evidence" against Alemao who contended that his arrest was part of a "political game", a charge rejected by Chief Minister Laxmikant Parsekar, heading the BJP-led government in Goa.
Before being produced in court, 66-year-old Alemao told reporters that his arrest was part of a political game.
"It is a political game. They are harassing me for no reason. I am ready to appear before the investigating officer whenever they want. I am innocent. I have not robbed anything," he said.
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Alemao is the only politician arrested so far in connection with the pay-off scandal. The Crime Branch had quizzed Alemao twice last week, besides Kamat, who was the Chief Minister between 2007 and 2012.
"Police is doing a good job. No one would be spared. There is no political interference in that. We have given a free hand to them to investigate this case."
During the hearing on his remand, Alemao's lawyer said, "my client is ready to be in the custody even till Monday if there is something that police can expect to collect from him."
On the other hand, police is preparing to oppose Kamat's anticipatory bail plea, which will come up for hearing tomorrow in a court here.