Acting on a tip off, police raided the shop and nabbed three persons selling liquor there, Deputy Superintendent of Police, Sachivalaya, Manish Kumar told PTI.
Three employees of the shop have been arrested, he said.
During search operations, police seized 500 bottles of Indian made foreign liquor from a godown behind the shop, he said.
An FIR has been registered against MLC Nawal Kishore Yadav, his brother Vijay Singh Yadav and the three employees arrested from the spot, he said.
Yadav was recently suspended from RJD for six years when he had sung paens to BJP prime ministerial candidate Narendra Modi at Biharsharif.