Hyderabad: In a major development in the alleged corruption in the Kaleshwaram irrigation project, the Anti-Corruption Bureau (ACB), Telangana, on Tuesday arrested Chetti Muralidhar Rao, former Engineer-in-Chief of the Irrigation department, in a disproportionate assets (DA) case.

Rao played a key role in the construction of the multi-crore Kaleshwaram Lift Irrigation Project (KLIP) during the previous BRS government. The ACB conducted searches in the houses of Muralidhar and his close family members across the state before his arrest. Official sources said assets worth Rs 200 crore were unearthed during the searches.

The probing agency also launched a hunt for Rao’s son Abhishek who allegedly secured contract works on binami names and earned money through transactions related to the Kaleshwaram project.

Officials from the ACB stated that a case has been registered against former ENC Rao under the Prevention of Corruption Act, based on the initial evidence suggesting that he accumulated wealth far exceeding his known sources of income during his tenure. Rao is currently in ACB custody and undergoing questioning.

The arrest of the retired top irrigation official has assumed significance as Justice PC Ghose Commission of Enquiry which is investigating into the lift irrigation project is likely to submit its report soon. Justice Ghose had already grilled Rao and sought crucial information about the project details, including the escalation of the cost of the project and release of funds to the contracting agencies. Apart from Muralidhar Rao, the ACB also arrested several other senior officials of the Irrigation department in corruption cases.

The ACB report in connection with the arrest of the top officials would also be crucial for the Ghose Commission to arrive at a conclusion on the role of irrigation officials in irregularities in the Kaleshwaram project which was constructed by borrowing funds from central funding agencies including financial institutions.