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He was seen speeding along the National Highway between Angamaly and Kalamassery.
The car has been impounded, and Baiju was released on station bail.
The driver Sujith, a native of Palakkad, was taken into custody.
In a test by the coprporation's vigilance team, three employees were found to have consumed alcohol while on duty.
100 cases of arriving for duty drunk and possession of alcohol during duty were reported in 60 units of KSRTC in an inspection carried out by the Vigilance Dept from April 1 to 15.
The driver and two of his assistants were later released on station bail.
A case was subsequently registered against Gopi Mohan for causing an accident due to drunk driving.
The authorities now say there was a clerical errort in the order signed by District Police Chief S Sasidharan.
Police said Bharath was in an inebriated condition when he obstructed the car in which Suresh Gopi was travelling. The incident happened at Thoshiba Junction near Kalamassery.
Two other staff, including one who reported for duty in an inebriated state, have been suspended.
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