He was arrested with one other at a cafe in Malleshwaram area in the city late last night on a complaint filed before the Lokayukta by the farmer, Lokayukta sources said.
Hiremath was today produced before Lokayukta Court judge N K Sudhindara Rao, who remanded him in judicial custody till November 24.
Hiremath had filed a bail application which the court posted to November 21 for the prosecution to file its objections.
The Deputy Commissioner had allegedly demanded Rs 20 lakh from the farmer, Nagaraj, to denotify his land in Thanisandra, which was acquired by BDA for forming the Arkavathy Layout.
The farmer wanted that his 1.16 acre land be released from notification as per a Supreme Court order.
Hiremath initially demanded Rs 20 lakh, but later settled for Rs 16 lakh and had collected Rs five lakh as advance, Nagaraj alleged in his complaint.