The Enforcement Directorate on Wednesday arrested Aam Aadmi Party Rajya Sabha MP Sanjay Singh in connection with the now-scrapped Delhi excise policy, officials said.

The 51-year-old leader was arrested Wednesday evening after the anti-money laundering agency conducted searches at his premises. He becomes the second high-profile AAP leader to be arrested in this case after former deputy chief minister Manish Sisodia.

The AAP has alleged the ED "targeted" Singh as he raised issues related to the Adani group in Parliament.

The ED had mentioned Singh's name in its charge sheet. It stated that Dinesh Arora, a middleman, had said he had met Singh during a party in his restaurant Unplugged Courtyard. In 2020, it said, Singh allegedly requested him to ask restaurant-owners to generate funds for the Aam Aadmi Party for the Delhi assembly elections. He said he gave a cheque of Rs 82 lakh.

According to the charge sheet, Dinesh Arora said in his statement that another accused -- Amit Arora -- wanted help in shifting his liquor shop from Okhla to Pitampura.

It was alleged that he managed to do this through Singh who told Sisodia after which the matter was resolved by the Excise Department.

Dinesh Arora also said he met Chief Minister Arvind Kejriwal once at his residence with Singh while he had spoken to Sisodia five-six times, the charge sheet stated.

Earlier in the day as the agency conducted the searches, AAP spokesperson Reena Gupta said, "Sanjay Singh kept on raising questions on the issue of Adani and this is why the raids are being conducted at his residence. The Central agencies found nothing earlier and won't find anything today either. First, they conducted raids at the residence of some journalists yesterday and today, raids conducted at Sanjay Singh's residence." Singh's father Dinesh Singh said they are cooperating with the ED.