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Flash raids conducted by the Vigilance at taluk and village level revenue offices exposed the widespread fraud.
CM Ravindran has been served a notice to appear for questioning on Monday.
The Kerala CM has warned stringent action on those found guilty of pilfering from the CMDRF that is meant to support the poor.
Huge amounts are being pilfered from the CMDRF by an illegal nexus of government officials in district collectorates, doctors and private agents across Kerala.
The special court approved the extension after the ED submitted that the diplomat's role in the Wadakkanchery Life Mission corruption case was bigger than expected.
The ED has received WhatsApp chats, which show that it was Sivasankar who prepared the letter for Red Crescent two days before signing the MoU for the project.
The flat was allegedly constructed by diverting the fund allotted by the Red Crescent Society for rehabilitating flood victims to the Life Mission.
The report filed by the Enforcement Directorate states M Sivasankar helped a private contractor get the contract.
The former principal secretary to Kerala CM, who was arrested on Tuesday, said the ED quizzed him for 12 hours.
Malappuram Crime Branch SI Suhail allegedly took the bribe to settle a cheating case.
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