"Devidas Pingale was arrested today in connection with suspicious transaction of the (seized) unaccounted for cash," said Panjabrao Ugale, Superintendent of Police (ACB) and Additional SP, Prashant Deshpande, who is the investigation officer (IO) of the case.
The NCP leader was arrested after ACB sleuths questioned him for over two hours in the agency's office, the officer added.
The trio had told police the cash was the dearness allowance (DA) and the difference in dues meant for APMC employees.
Meanwhile, one of APMC directors Shivajirao Chumbhale and some employees lodged a complaint against Pingale in connection with the seizure.
"An enquiry was underway since then by the ACB," Ugale said.
Pingale had represented Nashik constituency during 2004-09. He was succeeded by Sameer Bhujbal, nephew of NCP stalwart Chhagan Bhujbal, who is currently in jail in Mumbai along with his uncle in connection with the money laundering cases against them.