Aiyappa was taken into custody under charges of forgery in the land scam case.
He was earlier DC of Bangalore Urban district and was transferred as Rural DC in November last after two FIRs were registered against him.
The first FIR is about a complaint filed before the Special Lokayukta court alleging that Lokayukta City Superintendent of Police Shivashankar had leaked the information to Aiyappa after a complaint was received against the Deputy Commissioner.
In other case, which led to his arrest today, Aiyappa has been accused of forging documents to facilitate sale of land more than worth Rs32 crore. Yelahanka MLA SR Vishwanath and 13 others have also been named as the accused in the private complaint filed in Lokayukta special court.