Rao, who was serving as ACP in the Economic Offenses Wing (EOW) at the Central Crime Station (CCS) in Hyderabad, was sent to judicial custody for 14 days on May 22.

The ACB had sought 10 days' custody of Rao for further investigation in the case. On Tuesday, the court sent him to ACB custody for three days.

The anti-corruption agency is expected to gather more information from the ACP about his "illegally acquired assets".

The ACB had arrested Rao on May 22 after raiding his house and other locations of him and his relatives.

ACB had identified Rao's assets worth about Rs 3.95 crore. These include cash, gold, silver items and other movable and immovable assets.

ACB officials had raided the ACP's house in Hyderabad and 1 other location in Telangana and Visakhapatnam in Andhra Pradesh.

There are also allegations that he is involved in irregularities and misusing his official position.

The ACP was the investigating officer in the high-profile Sahithi Infra fraud case, in which the accused had defrauded customers to the tune of Rs 1,100 crore.