The former minister and his wife Pritilata were traced after tapping over 50 telephones to an apartment at Betaitola in the neighbouring state's Howrah district early this morning by the Human Rights Protection Cell (HRPC) of the Odisha police, Director General of Police Prakash Mishra said.
The Mohanty couple had rented two flats since March 20 in the name of different persons.
They were produced amidst tight security before the court of Sub-Divisional Judicial Magistrate Ranjan Kumar Sutar who sent them to judicial custody till April two and also posted their bail application to that date.
The SDJM also sought production of the updated case diary, Additional Public Prosecutor Arun Behera said.
Meanwhile, Chief Minister Naveen Patnaik, who is in Delhi, said the law would take its own course in the case against Mohanty, who had gone into hiding on March 15 after resigning as the Law minister.