Peddapally sitting MLA and Telugu Desam candidate Vijaya Ramana Rao, was arrested by Bollarum police on Tuesday. He was later released on bail.

Mr. Rao’s name figured in the confession of a person called Rajamouli of Karimnagar, from whom the Bollarum police seized Rs. 90 lakh. Rajamouli admitted that he came to the city to collect the money to be handed over by a person called Nagaraju at the behest of Mr. Rao. While Rajamouli was presented before court, Mr. Nagaraju and Mr. Rao were not held till Monday. “We released Rao on bail. We’re yet to ascertain facts ,” Bollarum Inspector G. Jagan said.

Police seized Rs. 66 lakh from a flat in Shilpa Towers at Nandyal, believed to have been meant for distribution among voters.