Tripura police have arrested former Khadi and village industries development board director Kaijar Debbarma for alleged misappropriation of funds.
Debbarma allegedly misappropriated Rs 32.33 lakh misusing his official position.
He was arrested on Thursday night from his residence in Agartala.
A case under section 409 of the Indian Penal Code (IPC) and section 13 of Prevention of Corruption Act was registered against him on him on Wednesday.
The case was registered following a complaint filed by Nita Debbarma, deputy secretary of industry and commerce department at NCC police station.
Debbarma was transferred to the industries department as assistant director from the Khadi Board over corruption charges against him.
A departmental inquiry was initiated against him in connection with the graft allegations.