New Delhi, Feb 16 (IANS): The Central Bureau of Investigation has arrested an official of the Enforcement Directorate (ED) and one other person in connection with a graft case, officials said on Monday.

A CBI official here said that the agency arrested D. Chennakeshavulu, MTS, ED posted in Bengaluru and a private person named Veeresh.

The official said that a case was registered against both the accused and unknown others on a complaint.

It was alleged that the ED official approached the complainant at a hotel in Bengaluru, introduced himself and told him that he needed to search his house in the light of several complaints against him.

The official said that Chennakeshavulu carried out search at complainant's house and demanded an amount of Rs two crore to close the complaints against him.

"The complainant allegedly delivered an amount of Rs 6 lakh to Veeresh as instructed by Chennakeshavulu," the official said.

The official said that the complainant received another call on next day and was instructed to hand over the remaining money to a person waiting at the designated place.

"The complainant met the person and insisted on the presence of the accused official to settle the matter," he said.

The official said that a team of the CBI carried put searches at the premises of the accused and the private person.

Both the arrested accused were produced before a Bengaluru court, which sent them to five days CBI custody, he said.