Ms. Balan, who hails from Kerala, was appointed junior assistant in the department on compassionate grounds after the death of her husband a few years ago.

A Deputy Superintendent of Central Excise, Savithri Balan, was arrested by the Narayanguda police on Tuesday on charge of running a brothel in her flat at Hyderguda.

The 53-year-old officer was found in her flat behind Niagara Hotel running a prostitution racket with two women, Narayanguda Inspector B. Narsimha Reddy said.

On a tip-off that a brothel was being run in the flat, the police had sent a constable as a decoy to the flat and after confirmation, conducted the raid, the Inspector said.

Ms. Balan, who hails from Kerala, was appointed junior assistant in the department on compassionate grounds after the death of her husband a few years ago. A case under the Prevention of Immoral Trafficking Act was registered against her.

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