New Delhi, April 22 (IANS): The CBI Tuesday arrested a finance ministry director for demanding Rs.35 lakh bribe from a Chennai-based man to regularise the irregularities in a nursing college being run by him.

A. Paramasivan was arrested from a hideout in Delhi early Tuesday morning following the arrest of his brother-in-law Sivaram, a medical officer, from Chennai in the bribery case.

The Central Bureau of Investigation (CBI) has so far conducted raids at seven places including Chennai, New Delhi and Noida.

"During the raids -- conducted at the offices and residences of Paramasivan -- Rs.1 crore in cash has been recovered along with some incriminating documents," said a CBI official.

"It was alleged that the director deputed in the office of director general of audit of central expenditure department at the Accountant General of Central Revenue building in New Delhi demanded Rs.35 lakh as bribe for regularising the irregularities of a nursing college being run by the complainant in Chennai," said the official.

Paramasivan directed the complainant to pay the first instalment of Rs.5 lakh to his brother-in-law at a designated place in Chennai Monday, the official added.

The CBI laid a trap and Paramasivan's brother-in-law was caught red-handed while accepting the bribe.

Several places were raided Monday but the agency couldn't arrest Paramasivan.