IAS officer Ravi Inder Singh, a 1994-batch West Bengal-cadre, was accused of passing on information to a telecom company.
However, police officials stated that Singh was not formally arrested, he was only detained for questioning.
GK Pillai, the Union Home Secretary, stated, "The raid was conducted after complaints that the officer was leaking sensitive information to some corporates."
Singh is the third IAS officer to be held in 2010 over the charge of leaking sensitive information.
IAS officer O Ravi, a joint secretary handling disaster management, and RS Sharma, a director-rank officer handling police modernisation, were arrested on similar charges in Apr 2010.