Acting chairman of Company Law Board R Vasudevan was arrested by CBI for allegedly taking bribe of Rs seven lakh from a company secretary to give a favourable verdict to a media house.

Mr. Vasudevan was arrested from his official residence at HUDCO Palace in south Delhi late last night while he was allegedly accepting the bribe from Manoj Banthia, who was also nabbed.

CBI registered a case against Mr. Vasudevan, Mr. Banthia and advocate Ankur Chawla under 120-B (criminal conspiracy) of the IPC and Section 7 (Public servant taking bribe other than legal remuneration in respect of an official act), 8 (taking bribe, in order, by corrupt or illegal means, to influence public servant) and other sections of the Prevention of Corruption Act.

"The company secretary was caught while delivering illegal gratification. The accused demanded illegal gratification to give favourable orders in a case being presided over by him," a CBI spokesperson said here on Tuesday.

Mr. Vasudevan and Mr. Banthia were later produced before Special CBI judge O P Saini who sent them to police custody till November 30.

CBI, after registering the case, carried out searches at seven locations in Delhi, Kolkata and Chennai.

"We have recovered Rs 55 lakh including Rs seven lakh bribe amount from the residence of the Company Law Board member and Rs three lakh from the company secretary's hotel room in Delhi," the spokesperson said.

"Incriminating documents recovered during searches from the premises of the accused persons are being scrutinised," the spokesperson said.

After registering a case on a tip-off, the CBI started monitoring the activities of Mr. Vasudevan during which it claimed to have got the information that he would be handed over nearly Rs seven lakh by a company secretary to give a favourable order, official sources said.

They said Mr. Banthia works with a leading vernacular daily.

CBI also registered a ase against Advocate Ankur Chawla for criminal conspiracy and various sections of Prevention of Corruption Act, sources said.

Mr. Vasudevan, who was earlier working as a regional director of CLB in Chennai, had moved here last year.

He was also probing the violations of the Company Law Act in the multi-crore rupees Satyam case.

After his arrest, the authorities were now planning to have a re-look at the probe conducted by him.