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The Channagiri MLA had got bail days after his son Prashant M V, who was caught while receiving a bribe of Rs 40 lakh from a contractor on March 2.
Subsequent raids led to the detection of unaccounted cash of Rs 8.23 crore from Virupakshappa’s house, sources said.
”We arrested him in Tumakuru when he (the MLA) was on the way to Bengaluru,” Lokayukta Inspector General of Police A Subramanyeshwara Rao told PTI.
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Justice K Natarajan rejected the anticipatory bail plea of the Channagiri MLA.
Virupakshappa, who was the chairman of KSDL, has been charged with demanding bribe through his son Prashanth Madal, a KAS officer.
A demand for Rs 81 lakh bribe to pass a bill was made and his son was caught in his office while accepting Rs 40 lakh out of it.
Later, over Rs 7 crore in cash was seized from Virupakshappa’s residence.
Prashanth has already been arrested in the case on March 2. Four more arrests have been made by the Lokayukta police in the case since then.
The BJP MLA has since resigned as the chairman of KSDL.
Virupakshappa is the prime accused in the case. The HC had earlier granted interim anticipatory bail to the MLA on a Rs five lakh personal bond which helped him escape arrest.
Virupakshappa faces charges under Section 7(A) and 7(B) of the Prevention of Corruption Act. While Prashanth is the second accused in the case, Siddesh, Nicholas and Gangadhar are the other accused.