However, Panwar is not the first senior official facing corruption charges in Daman. Last month, Executive Engineer H C Hiramath's palatial residence was raided by the police and sale tax officials. However, he had managed to get interim bail. Tomorrow is his regular bail application hearing.

Assistant Inspector General of Police Manoj Kumar Lall told Express Newsline that Panwar, who is in police custody, had bought vikas patra during 1997-98. About 800 grams gold and bank documents were recovered from the locker. A cash amount was seized from his office and residence.Panwar was general manager of the Daman Industries Centre (DIC). He had also officiated as collector of Daman.

According to police officer E J Rosario, there were complaints against Panwar that he was running a factory in the name of his son and also accepting bribes. It is alleged that he used to call industrialists to his office and demand job work for his plastic factory.

The Police raided Panwar's office and residence and recovered Rs 2.50 lakh (Rs 50,000 were found in his office drawer and Rs 2 lakh in residence). Besides, the police seized cheque books and other ``incriminatory documents'' showing that he had amassed wealth disproportionate to his known sources of income. Panwar had purchased land in Goa, Daman and Uttar Pradesh, his home state.

An First Information Report(FIR) was lodged against Panwar late on Wednesday night and he was arrested under Section 30 (Prevention of Corruption Act,1988) and Indian Penal Code 201, 120-B. The special court has remanded him to police custody till Tuesday next.

As for Hiramath, he had two factories run in the name of his son Vijay and his wife Anupama. His residence has a swimming pool and other modern facilities. Interestingly, under the voluntary income disclosure scheme Hiramath had declared Rs 10 lakh in his son's name.

The police, income-tax and sale tax officials raided his house on February 3 after chief vigilance officer was directed by Chief Vigilance Commissioner, Delhi who had received written complaint against Hiramath. But by the time case was registered against him on February 13, Hiramath along with his two sons, daughter and wife disappeared after putting in a leave application. He was able to get interim bail. His bail application will come up for final hearing on Monday.