The Delhi Police on Thursday arrested Manoj Kumar, Aam Aadmi Party MLA from Kondli, over an alleged land grab case.
He was later produced before Karkarduma Court.
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Police had earlier detained Manoj for interrogation.
"This is an old matter related to land fraud, questioning of (AAP MLA) Manoj Kumar is on as of now," ANI quoted Delhi Police Commissioner BS Bassi as saying.
Police detained him on the basis of a complaint filed a month ago by Vinod Kumar, who claims to be AAP MLA's business partner. A case of cheating and forgery was registered then.
In the complaint, Vinod claimed that he had given ₹6 lakh to the MLA to purchase a land in November 2012, but the latter never returned his money. Vinod further claimed that Manoj was a property dealer before he joined politics.
The latest detention of AAP MLA has apparently become a fresh blow to the party. Last month, former Delhi Law Minister Jitender Singh Tomar was arrested for forging his graduation and law degrees.
Following days of investigation, Tomar reportedly confessed to faking his degrees. He put in his resignation papers on 9 June.