Lanco Infratech managing director Venkatesh Prasad was caught with Rs 34 lakh (Rs 3.4 million) in cash at the Hyderabad airport by income tax officials on Saturday.

While the income tax department informed the media about the seizure of cash and arrest of the "managing director of a power development and infrastructure company" without naming the company at a press conference, it was later found that the person he was referring to was the Lanco MD.

A senior executive of Lanco Infratech Limited confirmed the development, but maintained that Lanco had nothing to do with the money.