Punjab Agriculture Director Mangal Singh Sandhu was arrested from his residence here late last night by a police team from Bathinda, a senior police official said today.
Sandhu was later produced in a local court in Bathinda, which remanded him to three-day police custody, a police official said.
Later in the day, the Punjab government suspended Sandhu with immediate effect following the submission of an inquiry report, which found serious irregularities in purchase of pesticides.
On September 2, Bathinda Police had registered a case and had nabbed a representative of pesticide supplier who told police that the Director Agriculture allegedly accepted money for the supply of spurious pesticide.
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Facing the ire of opposition Congress and farmers for the extensive damage to cotton crop in Whitefly attack, Punjab government had earlier removed Sandhu from his post on September 17.
However, Sandhu moved to Punjab and Haryana High Court which stayed his removal.
Congress had also been demanding the resignation of Agriculture Minister Tota Singh over this issue.
Chief Minister Parkash Singh Badal had assured the House that anyone found guilty of supplying "spurious" pesticides to the cotton cultivators would not be spared.
The state government had ordered a probe into the sale of "spurious" pesticides by a Special Investigation Team (SIT) comprising three Inspector Generals of Police under the direct supervision of Additional Director General of Police (ADGP) Crime.