The Commission for the Investigation of Abuse of Authority (CIAA) has detained Tirtha Raj Aryal, director general of the Department of Passports.
A sources confirmed that Aryal was detained on Tuesday.
He is currently being interrogated regarding issues related to passport supply.
"The inquiry process is underway," the source said, adding that the CIAA had visited the office on Monday evening to seize relevant documents.
Director General Aryal had visited the Prime Minister's Office on Monday, reportedly to meet the prime minister.
Furthermore, the CIAA has detained Siddhartha Thapa, operator of the printing company Veridos, for investigation. Thapa is the son of Nepali Congress National Assembly member Sunil Thapa and the grandson of the late former prime minister Surya Bahadur Thapa.
Additionally, IT Director Sunil Kumar KC has also been taken into custody by the authorities.