M. Jayachandran was arrested by 19 policeman after several rounds of questioning and searches were being carried out at his residence, a spokesman for the Central Bureau of Investigation (CBI) said.

The CBI seized laptops and documents from his office and residence.

The latest action comes a week after police arrested two other top former Games officials over alleged corruption in connection with an event held last year in London, the Queen's Baton Relay.

Sacked organising committee joint director general T. S. Darbari and deputy director general Sanjay Mahendroo were arrested on November 15 after detectives raided their homes.

Police said the two handed out contracts at "exorbitant rates" to two London-based private firms for providing transport services and video screens for the event held in London.

The CBI has slapped charges of forgery, criminal conspiracy and corruption against the two detained officials as well as against owners of London-based companies AM Car and Van Services and AM Films.

Darbari and Mahendroo were sacked by Kalmadi after the scandal surfaced before the Games opened last month.

It has been reported that less than two weeks before before his arrest Darbari sent the CBI Director a letter in which he claimed that the decision to award the Queen's Baton Relay tender to AM Films and AM Cars had the approval of Kalmadi.

In the letter to the CBI chief on November 3, Darbari said he was "not a member of empowered committee which approved the contract of QBR...never involved in the tender process or shortlisting of vendors or transferring payments into their accounts".

He added: "My role was purely relating to protocol, coordination with multiple agencies in the UK and ensuring preponement of the QBR launch function from November 3, 2009 to October 29, 2009, to synchronise with the state visit of President of India.

"The decision to make payment to AM Films and Cars was considered on file.

"This decision was further endorsed and approved on file by Treasurer, Secretary General and Chairman".

Those positions were held by Jayachandran, Lalit Bhanot and Kalmadi (pictured) respectively.

He attached minutes of meetings regarding the tenders for the Queen's Baton Relay, his letter to Organising Committee chief executive Jarnail Singh and other documents.

Kalmadi quit as secretary to India's ruling Congress party earlier this month following calls for a probe into his alleged role in Games-related corruption.

The budget for the event ballooned to around $6 billion but the event was still hit by delays and organisational problems.

The Central Vigilance Commission (CVC) national watchdog has also received complaints alleging up to $1.8 billion of Games money was misappropriated.

Months before the event began, the CVC reported a plethora of problems with construction work including the use of poor-quality materials.

In one of the worst incidents, a new footbridge next to the main stadium fell down and injured scores of labourers 10 days ahead of the opening ceremony.

Prime Minister Manmohan Singh set up a panel to investigate claims of financial irregularities and two other Government bodies are also running separate probes.

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