M C Katoch, then a sub-divisional officer with the Public Works Department, was arrested from Palampur Town, about 35 km from Dharamsala, an official of the vigilance bureau said.
Katoch is the first to be arrested since a case of cheating and misappropriation was filed on August 1 against the Himachal Pradesh Cricket Association, led by BJP MP and son of former Chief Minister Prem Kumar Dhumal, Anurag Thakur.
"Katoch took the decision to declare the building unsafe without getting its technical survey report, whereas the fact was that the building was repaired just a year before," a bureau official said on the condition of anonymity.
"A fresh land demarcation was carried out three days ago by revenue officials and it was found that the HPCA has encroached upon 3,000 sqm of government land. Earlier, it was estimated that the encroachment was on 720 sqm land," the official said.
Second, it has been accused of encroaching upon 3,000 sqm of government land. The plot is located near the main gate of the Dharamsala stadium.