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Raja Ghazanfar Ali Khan, a former Bahujan Samaj Party minister for minority welfare, was arrested on Monday morning at his hometown in Kiratpur village at Bijnore district, Uttar Pradesh.
He was accused of misappropriating Rs 9 crore, which was meant for minority welfare.
A case was registered in Kanpur and the Criminal Investigation Department was inquiring into it.
Raja Khan had left the BSP when the party split in 1996. He then joined the breakaway group under the banner of Jantantrik Bahujan Samaj Party.
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