Filmmaker and LJP candidate from West Champaran seat Prakash Jha was arrested after police raided his guest house and allegedly seized Rs 10.25 lakh following reports that he was distributing money among voters.
West Champaran Superintendent of Police K S Anupam led a team of local police and central paramilitary forces in the raid at Jha's guest house around midnight, seized the money and arrested 29 persons, including the filmmaker.
They were, however, later let off on furnishing personal bonds, official sources said on Wednesday.
All the 29 were booked under section 171-g (false statement in connection with an election), 171-h (illegal payment in connection with an election) and 171-i (failure to keep election accounts), Anupam told PTI.
Jha, however, denied that the money was meant for distribution among the voters.
"The money seized is like small change. It was kept at the guest house close to the Maurya sugar factory that I am building. The money was to be paid to the labourers and other employees of the factory," he claimed.
Jha accused Chief Minister Nitish Kumar and his deputy Sushil Kumar Modi of acting with vendetta against him to sully his image.