Reports said Sanjeev Kumar, a 1985 batch Haryana officer, was arrested on Friday morning along with three gangsters and weapons.
Police said Kumar had plotted murder of a close friend and businessman over a property dispute.
The plan was disclosed to police by the contract killer the officer hired.
Kumar was sentenced to 10 years in jail in 2013 for the illegal recruitment of thousands of teachers in Haryana. Former Chief Minister Om Prakash Chautala and his son Ajay were also convicted in the case.
Police said the officer plotted his friend's murder with gangster Shoukat Pasha when he was in Tihar jail in Delhi last year.
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