The government, however, rejected permission for prosecution of another senior IAS officer and currently Executive Officer of Tirumala Tirupati Devasthanams, L V Subrahmanyam, in the same case, official sources in the Chief Minister's Office said.
Arrested by the CBI a few months ago, Acharya is currently in jail here.
The CBI, which already filed a charge-sheet against Acharya and others in Emaar case.
The CBI special court trying the case has issued summons to Acharya and Subrahmanyam to appear before it on June 11.
The CBI sought the state government's nod for prosecuting the two officers, but the latter pushed the ball into the Centre's court.
The Centre returned the file to the state seeking its remarks.
After keeping the file on hold for many days, Chief Minister Kiran Kumar Reddy finally consented to the prosecution of only Acharya while sparing Subrahmanyam, the official sources said.
The Chief Minister discussed the issue with state Advocate General Sudarshan Reddy before leaving for Bengaluru this afternoon, after which, a letter was written to the Centre on the prosecution issue, the sources added.
