The Central Crime Branch has arrested G. Janardhan Reddy, the former Karnataka minister and mining baron who had been on the run for three days before he appeared for questioning on Saturday, ANI tweeted.
The police had been on the lookout for Reddy in connection with a money transaction worth crores of rupees allegedly linked to a ponzi scheme.
ANI also said that Reddy's aide Ali Khan has been arrested.
Khan allegedly struck a Rs 20 crore deal with Syed Ahmed Fareed of Ambidant Marketing Pvt. Ltd, a company accused of involvement in the ponzi scheme, to bail him out from an Enforcement Directorate investigation, according to PTI.
ANI quoted Central crime Branch official Alok Kumar as saying that Reddy was arrested on the basis of "credible evidence" and that he would be produced before a magistrate.