Bengaluru, Jan 18 (IANS): A Congress leader from Chitradurga has been arrested in connection with the alleged suicide of contractor here two years ago, police said on Wednesday.

Jayaramaiah, the accused, is also managing director of Ishwaryagiri Construction Company. The police have launched a manhunt for another accused G. Shivakumar, the director of the company.

The accused Jayaramaiah had sub-leased the contract work allotted to him through a tender to deceased V.M. Mallikarjun, a resident of Peenya in Bengaluru. The victim had spent Rs 2.54 crore to complete the work and despite getting the money released from the government, the accused refused to pay him back.

On being questioned, the accused abused and threatened him. It is further alleged that accused Jayaramaiah had cheated Mallikarjun's brother Basavaraju of Rs 1.20 crore.

Unable to take in the pressure, Mallikarjun had committed suicide two years ago, naming the accused Jayaramaiah in the death note.

Investigations have shown that accused Jayaramaiah used to get contract from the Sewarage Board attached to the government of Karnataka. He used to give the allotted work as sublease to other contractors.

Mallikarjun was introduced to the accused through one of his friends. Rajagopalanagar police arrested the accused and took up further investigation.