Salu, picked up by the police from her home at Changanassery near Kottayam, was arrested this evening after interrogation by the special investigation team headed by ADGP Hemachandran, police sources said.
The arrest was based on a complaint lodged by on Rasiq Ali, a Thiruvananthapuram-based businessman, from whom she had allegedly received a huge sum promising a business deal with Biju.
She would be produced before a court here tomorrow.
Ever since the scam broke out pushing the Chandy Government on backfoot, name of Salu has figured for her suspected links with Biju and a magistrate court at Thrissur yesterday directed police to file an FIR against her.
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She had been under scanner right from the start and the investigators came across 'evidences' that pointed that she had helped Biju escape from the state, sources said.
The opposition LDF had also been pressing for her arrest after it was found that several top politicians, including Home Minister Thiruvanchur Radhakrishnan had visited her home or the dance school she runs.
The scam also had its reflection on the factional equations in the Congress in the state as the telephone call details gathered by investigators showed that several ministers and political leaders had made calls to Saritha, apart from getting frequent calls from her.