"V Bhaskar, who was on the run, was nabbed by the officials of the SIT from a hideout here," SIT chief Kamalpant said.
Karnataka Lokayukta Bhaskar Rao's son Ashwin Rao is at the centre of a controversy for allegedly being a key player in the racket in collusion with some officials of the anti-corruption body. Ashwin Rao was arrested on July 27.
The arrest of the RTI activist, stated to be a close an associate of Ashwin, would help them to reach some leads to unearth the racket further, SIT officials said.
Meanwhile, Riyaz, produced before a Magistrate court, accused the SIT officials of "ill-treatment" and sought bail.
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Riyaz's advocate submitted that all allegations against him were false and there was no proof.
Countering the arguments, SIT officials said in fact they have enough evidence to prove Bhaskar's guilt.
They also submitted that if Riaz was given bail, he would further destroy evidence.