Rourkela, Jan. 9: The CBI today arrested the Rourkela Steel Plant's executive director (works) Bhubaneswar Prasad Verma for allegedly showering favours on certain private agencies during his tenure in the city and Bokaro.

Verma was supposed to take over as the chief executive officer of Bokaro Steel Plant from April 1. The police seized Rs 20 lakh in new currency notes during a raid at Verma's residence in SB3 at Sector-19 yesterday evening. Eyewitnesses said the CBI team barged into his house and started conducting the raid. At that time, Verma was busy preparing for his son's wedding, supposed to take place later this month.

The CBI team, led by deputy superintendent of police S.Q. Ali, today raided Verma's office. In his bank account, Verma has Rs 29 lakh, and his locker at the bank will be opened tomorrow.

The CBI has also taken one Vinay Kumar Singh, a contractor, into custody for allegedly offering a bribe of Rs 1 lakh to Verma, official sources said.

Sources also said Verma was supposed to leave for Bokaro this morning and take over the charge of executive director (works) till his next promotion as the chief executive officer. A chemical engineering graduate from Birsa Institute of Technology, Sindri, Verma started his career as a management trainee (technical) with SAIL in the 1980s and rose to the level of executive director (works).

A state police officer, who was part of the raid, said: "We had no knowledge about the raid. We were simply asked to come to the spot." Verma has been brought to the CBI office in Bhubaneswar.