The ACB also searched residences of accused engineers and found unaccounted wealth, officials said.
The arrested were presented before a local court which sent them to three days police custody.
According to the ACB, MP Raosaheb Danve in 2010 had filed a complaint with Lokayukta, Mumbai against four irrigation department engineers and three chairmen of Majoor Sahkari Sanstha.
He alleged that during March 2007 to 2009, under Employment Guarantee Scheme, the erring chairmen had carried works of a percolation and village tanks in Mauje Dhabadi village in Badnapur tehsil and Mauje Papal village in Jafrabad tehsil.
The engineers prepared bills of the tanks and released payment to the erring chairmen.
On receiving the complaints Lokayukta forwarded the complaint to the ACB and directed to inquire the matter.
The ACB found that there were discrepancies in records and actual works. The ACB also found that most of works had not carried out but the payment was released.
The ACB found that the engineers escalated cost of works of the two tanks of Rs 4.61 lakh and Rs 9.65 lakh and benefited the erring chairmen.
The arrested were identified as then executive engineer of minor irrigation department Jalna, Raghuveer Ganpatrao Yadav, then Sub divisional engineer (now retired) Bhaskar Kashinath Jadhav, sectional engineer Shrinivas Babaji Kale, then sectional engineer Jalna Rameshwar Ambadas Korde, then chairman Ganesh Majoor Sahkari Sanstha Bhokardan Subash Deshpande and then chairman of Guru dev Majoor Sahkari Sanstha Wadogodir village Rajendra Eknathrao Khomne.
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