Ramchandra Khan, who was evading arrest for past six months, was taken to Ranchi to be produced before the trial court there, CBI sources said.
They said nine persons including retired IPS officers Khan and Rajendra Sharma are accused in the scam and charges against them were framed in 2007 under various sections of IPC and provisions of Prevention of Corruption Act.
It is alleged that there were financial irregularities of over Rs 40 lakh in the purchase of uniform and other related articles for Bihar Military Police during 1983-85.
In 1980, it was recommended that heads of Bihar Military Police battalions will be able to make purchases from local market to meet shortages arising from the central procurement system.
In the process, purchases were allegedly made in the violation of norms at prices much above the approved rates and traders not approved by the central purchase committee.
Khan was the then AIG (D) while Sharma was the then commandant in Bihar Military Police.