Jibu D Mathew, Commandant of the BSF's 83rd battalion, was nabbed when he deboarded the Shalimar Express at Alappuzha, CBI sources said.
They said the arrest was made following a tip off about an alleged corruption case.
A CBI team along with an independent witness trailed him in the AC-1 coach of the train from the Erankulam junction, they said.
The commandant was intercepted when he got down at Alappuzha, the sources said.
On examining Jibu D Mathew about the source of the cash, it was found he got the money from smugglers operating at the India-Bangladesh border as illegal gratification for favours he extended to them, according to the FIR.
The CBI said it arrested Mathew on the basis of reasonable belief that he habitually accepted bribes by abusing his official position as a BSF Commandant for pecuniary gains.
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