According to sources, Sarabjot allegedly demanded a bribe of Rs. 1 crore from a Nashik-based contractor to close a case before the Commission.
Sarabjot had earlier claimed innocence, saying it was a conspiracy against him and that he was being framed.
Sarabjot was arrested by the Anti Corruption Branch of the CBI on Thursday evening in New Delhi and was taken to investigating agency''s Mumbai office.
In the wake of his arrest, the opposition is calling for Buta Singh''s resignation from the Commission.
Senior Bharatiya Janata Party leader Gopinath Munde said, "Buta Singh must resign immediately."
According to sources, a corruption case was filed on the basis of complaint by Ramraj Patil, a Nashik-based civic works contractor.
In his complaint, Patil had alleged that Sarabjot had demanded a bribe of Rs 3 crore, which was later brought down to Rs.1 crore, for withdrawal of a case under the Scheduled Castes/Scheduled Tribes (Prevention of Atrocities) Act, filed against Patil by a group of local conservancy workers employed by him.
