Sleuths from the Central Bureau of Investigation (CBI) arrested an Assistant Director of Handicrafts of Ministry of Textiles, Union government, on Wednesday night for allegedly demanding money to release funds for Self-Help Groups in Coimbatore district.

According to police sources, Gurumurthy (56), working in the Regional Office of Handicrafts Marketing and Service Extension Centre here, allegedly demanded Rs.20,000 from Babu of Sulur in Coimbatore to sanction the required funds to 15 SHGs.

Babu informed the Anti-Corruption Bureau of CBI, which arrested the officer when he accepted Rs.5000 from him.

Raids were also conducted at his house in Madurai.

The officer has been remanded to custody and lodged in Coimbatore prison. — Special Correspondent