New Delhi : The Enforcement Directorate on Wednesday arrested Aam Admi Party MP Sanjay Singh in connection with a money laundering case linked to the now-withdrawn new excise policy of Delhi, officials said.

It is the second high-profile arrest in the case after former Delhi deputy chief minister Manish Sisodia.

The arrest came hours after the ED conducted raids at the residence of the AAP Rajya Sabha MP in connection with the case

Earlier, in May, Sanjay Singh, in a letter to Finance Secretary TV Somanathan, said the ED director and assistant director deliberately linked his name to the alleged liquor scam without any basis, tarnishing his public image and defaming him.

Singh mentioned that his name was added on the basis of statements from Dinesh Arora. The AAP leader alleged further that the officers misused their position to tarnish his public image and demanded prosecution against them.

He added that he had already sent a legal notice to the officers concerned to issue an open and public apology.

According to ED sources, the name of the AAP leader appears four times in the ED chargesheet, one of which was typed inadvertently.

At one place Sanjay Singh's name was mentioned instead of Rahul Singh, who was the then excise commissioner.