Sanjay Chaudhary, a close aide of jailed former Jharkhand Chief Minister Madhu Koda, was arrested in Dubai on Wednesday on an Interpol red corner notice, the CBI said.
"He has been arrested in Dubai today," said an official of the Central Bureau of Investigation (CBI), at whose instance the Interpol alert was issued.
Chaudhary is accused of investing Koda's dubious funds.
Madhu Koda has been in jail since November 2009 in a Rs4,000 crore money laundering scam.