Police arrested former PWD Chief Engineer Sunil Bhowmik late Sunday night soon after the vigilance wing of Tripura police registered an FIR.
Police and state government officials remained tight lipped about the development.
Local media reports said that the FIR was registered about the "misdeeds in implementations of over Rs 600 crore numerous projects during previous Left Front government in 2008-09.
Since Sunday night and throughout Monday, the police team led by an officiating magistrate searched various places including state headquarters of CPI-M to arrest former minister Badal Choudhury, who was Minister in-charge of PWD and Finance Departments.
Former Minister and senior leader of Communist Party of India-Marxist (CPI-M) Manik Dey told reporters that huge contingent of police and Tripura State Rifles without any search warrant and without citing any reason wanted to search the party headquarters, but they were not allowed.
"We have nothing to hide and police can search our party offices and residences of any leaders, but it should be in accordance with law," Dey added.
Badal Choudhury filed for anticipatory bail on Monday before the District and Sessions court here but the Judge S. B. Datta Purakayastha did not deliver his order till late Monday evening.
The opposition CPI-M in a statement said that the Bharatiya Janata Party (BJP) government hatched a conspiracy against former PWD minister and senior party leader Badal Choudhury and accordingly registered an FIR with the police on Sunday.
"To divert the attention of the people from the huge misgovernance of the BJP-led government, massive non-performance of the state government, failure to fulfill the electoral promise and as part of it's political vendetta, the (state) government hatched the conspiracies against the previous Left Front government and former minister," the statement said.
It also said that the previous CPI-M led Left Front government had implemented enormous developmental projects with absolute transparency but the BJP-led government is trying to malign the good image of the former government.
CPI-M Tripura state secretary Gautam Das said that the party has decided to fight the 'political vendetta' both legally as well as politically.
Talking to media, BJP spokesman Nabendu Bhattacharjee said that there were various financial corruptions, crimes including murders and huge misdeeds during the Left Front government's 25 year rule.
"Police and the appropriate authorities are now independently probing all the corruptions, crimes and wrong-doings. Guilty whoever may be, would be punished accordingly," he added.
Meanwhile, the CPI-M held an agitated rally to protest the "political vendetta against the Left party".
Former Chief Minister and opposition leader Manik Sarkar, state party Secretary Gautam Das, Left Front convener Bijan Dhar led the rally here on Monday evening.
( With inputs from IANS )