Calcutta Port Trust chairman R.P.S. Kahlon was held from Kolkata, while he was allegedly accepting a bribe of Rs 20 lakh.
Kahlon is a senior IAS officer with 35 years of service.
He was on deputation. Along with him, another official was also arrested.
Second person was identified by police as D.D. Jagtap Dattaji, who is adviser/director of Bharat Calcutta Containers Terminal Ltd.
Bharat Calcutta Containers is a subsidiary of PSA of Singapore, which is owned by Temasek Holding, the sovereign wealth fund of Singapore.
Bharat Calcutta operates several container terminals at the Calcutta Dock System in Khidderpore.
According to sources, a trap was laid by the Calcutta Police.