KOCHI: The Customs on Thursday arrested suspended IAS officer M Sivasankar in the dollar smuggling case that came to light during the probe into the gold smuggling racket in Kerala in which he is also an accused.

Meanwhile, the customs interrogated two people who were closely associated with Speaker Sreeramakrishnan in the dollar smuggling case. The customs team interrogated Nazar, a native of Ponnani, owner of the SIM card secretly used by the speaker and Lafeer Muhammad, a native of Ponnani, who has an educational institution in Muscat. This move by the Customs has fuelled the political controversy yet again.

While Nas Abdullah was questioned by around 10 am on Thursday, Lafeer Mohammed was questioned at 12 noon. Speaker P Sreeramakrishnan used the SIM card which was in the name of Nazar. However, the SIM card was deactivated after allegations were levelled against the speaker in the gold smuggling.

The arrest of Sivasankar was recorded at a jail here, where he is lodged under judicial custody since his arrest by the Customs and the Enforcement Directorate in cases related to smuggling of gold through the diplomatic channel, Customs sources said.

Hours earlier, the Customs secured the permission of a court here to arrest the IAS officer in connection with the case related to the alleged smuggling of USD 1,90,000 (equivalent to Rs1.30 crore) by a former finance head of the UAE Consulate in Thiruvananthapuram to Muscat in Oman.

Prime accused in the gold smuggling case Swapna Sureshand Sarith PS are also allegedly involved in the dollar case and had already been arrested by the Customs.

Earlier, the Customs (Preventive) Commissionerate moved a plea in the Additional Chief Judicial Magistrate's (EconomicOffences) Court in Ernakulam seeking its permission to arrest Sivasankar.

Sivasankar, former principal secretary to Chief MinisterPinarayi Vijayan, was suspended after his links to Suresh, also a former employee of the consulate, surfaced.

The Customs on January 8 had recorded the statement of Sreeramakrishnan's assistant private secretary in connection with the dollar smuggling case.