Police on Saturday arrested the ward member of 49 Madhya Namani Chararaibahi Gaon Panchayat, Dipali Baruah, under Rowriah police outpost in Jorhat.
The Congress ward member was arrested on charges of alleged anomalies in distribution of Rs 1,000 government financial assistance provided to each of the poor family during the lockdown.
A case (No 747/2020) was registered at Jorhat police station against Baruah.
A police source said Baruah has been arrested under Section 420 of the Indian Penal Code (IPC).
Baruah, however, has refuted the charges brought against her and termed the action as a result of political conspiracy made to target her.
She told media persons that she had given Rs 1,000 each to her two sons, who are daily-wage earners and reside separately.
She further claimed that she had clarified from the panchayat office about the eligibility of her sons as beneficiaries of the government aid.