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'Spot Taxi Call Centre' was launched a few days ago in Sulthan Bathery municipal area.
MLA V R Sunil Kumar claimed that he is not acquainted with Basith.
The police will take a final decision after completing the interrogation.
Basith has admitted to the Cantonement Police that he used the name of the Health Minister Veena George's office to extort money from Haridasan.
The probe team is also planning to record Haridasan's confidential statement before the magistrate.
A police team from Pathanamthitta led by DySP Nandakumar took him into custody and brought him to the district on Friday morning.
The arrest was made based on a complaint made by the health minister's personal staff, Akhil Mathew, who had denied the allegations and sought a detailed probe into the matter.
The duo were booked with charges of ‘fraud’ and ‘impersonation’ after investigations revealed that Lenin had swindled Rs 50,000 from complainant Haridasan, while Akhil cheated him of Rs 25,000.
As per reports, police did not find any instance of money being exchanged during the periods mentioned in the complaint nor the health minister's personal staff.
As per Haridasan's complaint, he handed over Rs 1 lakh to Akhil Mathew at Thiruvananthapuram near an autorickshaw stand on April 10.