"Ram Bodh Maurya was arrested here and send to Mahanagar police station," Additional Director General Subrat Tripathi said.
Maurya was arrested by Special Investigation Bureau (SIB) of the Co-operative Cell of Uttar Pradesh Police.
Tripathi said that in 2010-2011 two proposals were passed for construction of 4.2 kilometre road from Makrai to Pahar in Mahoba district.
"Without the approval of the then Chief Minister and cancelling her order, LACCFED was made the executing agency," the ADG said.
In addition to this, without verification the second instalment of the payment was made, he said.