CHANDIGARH, Aug 30 — The former Haryana Public Works Minister, Dr Dharamvir Yadav, and a subdivisional engineer of the department, Mr N.K. Garg, were arrested by the state police on charges of corruption levelled against them. However, they were released because of the anticipatory bail granted by the Sessions Judge, Ambala.

While stating this here today, a spokesman for the Haryana police said that another accused, Junior Engineer S.S. Punia, had already been arrested.

A case was got registered by Mr Gautam Sethi, partner of S.V. Construction Company, Panchkula, at the Panchkula police station, on October 16, 1998, against Dr Yadav and some officers of the Public Works Department. It was mentioned in the charges that his company had taken a contract in March 1998, from the department to construct a 150 bedded hospital at a cost of Rs 255.77 lakh in Sector 6 of Panchkula within 16 months. The work continued smoothly till the first week of July, 1998, under the supervision of the Executive Engineer, Chandigarh Regional Division, Mr S.C. Singla, the Sub- divisional Officer, Mr J.R. Gupta, and the Junior Engineer, Mr Rishi Gupta. The company took payment of Rs 30 lakh from the department for the work done till June, 1998.

He alleged that it was on July 7, 1998, that Mr N.K. Garg visited the residence of Mr Sethi and demanded a bribe of Rs 5 lakh in the name of Dr Yadav, the then minister.

On the following day, Mr Sethi himself met the minister at his residence and spoke to him in this regard. Dr Yadav, while demanding Rs 5 lakh, allegedly threatened him that in case he did not pay the bribe, he would have to face the consequences. As the amount demanded was not paid, the construction work on the hospital was transferred from the Chandigarh Regional Division to the Bridge Construction Division.