In a pre-dawn raid, Syed Imran Ali (40) was arrested from Kendrapara township, Kendrapara SP Nitinjit Singh said.
Ali, who currently faces 13 criminal cases including those of murder, allegedly used a gang to rig the tender process by intimidating contractors so that those favoured by them bag the contracts.
Besides Ali, stated to be a leader of Tito-led gang, the police have so far arrested 23 other history sheeters in a month-long drive. Six contractors who had allegedly colluded with the gangsters to bag jobs were arrested.
The bidding process of various projects was suspended after it was found that tenders were rigged and fresh tenders have been invited, officials said.