District and Sessions Judge E Kharumnuid later remanded Rymbai, a former legislator, to 14 day's judicial custody yesterday.
However, he was later admitted at the Civil Hospital here after he complained of illness, police said.
Rymbai, who claimed to have the authorisation from Mawpalai village, received Rs 8 crore from the government for acquisition of a land in the village which was already acquired and under the possession of the Soil and Water Conservation Department.
The state government later filed a money suit at Nongpoh, headquarter of Ri Bhoi, to recover the amount paid to Rymbai.
Last month, the state CID was pulled up by the Assembly Public Accounts Committee (PAC) for its failure to make any headway in investigating the matter.