Mr SIngh has been taken to the agency's office and is likely to be produced in court on Thursday.
In yet another blow for the Aam Aadmi Party, the Enforcement Directorate has arrested its Rajya Sabha MP, Sanjay Singh, in a money laundering case linked to the investigation into the Delhi liquor policy. Searches were being conducted at the Delhi residence of the MP since early on Wednesday morning.
This is the third major arrest from the party. Delhi Health Minister Satyendar Jain was arrested in May last year on charges of laundering money through four companies that were allegedly linked to him.
The biggest setback for the party, however, came in February this year, when then Delhi Deputy Chief Minister and close Arvind Kejriwal aide Manish Sisodia was arrested by the CBI in the alleged liquor policy scam.
The raids against Mr Singh took place after he was named by businessman Dinesh Arora, an accused in the case, who later turned 'approver'.
Mr Arora had claimed that the AAP leader had introduced him to Mr Sisodia, who was the excise minister.
Search operations began at the Rajya Sabha MP's residence early on Wednesday morning and went on for a few hours. AAP workers reached his house and raised slogans against the BJP and the "misuse" of agencies. Additional police personnel were posted to prevent the situation from escalating.
Mr Singh has been taken to the Enforcement Directorate office, where his statement will be recorded. He is likely to be produced in court on Thursday afternoon and the agency is expected to seek his custody.
Delhi Chief Minister and AAP chief Arvind Kejriwal came out in support of his colleague while the raids were being conducted and, without naming the BJP, accused the party of engaging in desperate attempts to derail rivals ahead of next year's general election.
"For a year, we have been hearing noise about the alleged liquor scam. More than 1,000 raids have been conducted and not a single paisa was recovered. They just keep alleging 'scam'... I did a lot of investigation and found nothing," Mr Kejriwal claimed.
"Nothing is going to be found from Sanjay Singh's place too. Elections are coming and they feel (they) are losing... so it appears to be the last desperate attempt of the losing side," he said.
After news of the arrest came out, Mr Raghav Chadha made similar allegations and did not shy away from hitting out at the BJP directly.
"They have been investigating the case for 15 months but have not been able to unearth even a single rupee of illegal money. So much time and so many resources have been expended but they haven't been able to prove anything. This is just a political vendetta. The BJP knows it is losing," he said.
The Enforcement Directorate, which has filed multiple chargesheets in connection with the case, has never named Sanjay Singh as an accused, nor summoned him to record his statement.
Months earlier, Mr Singh had posted a photo on X, formerly Twitter, of him standing next to posters outside his home "welcoming" the Enforcement Directorate to his "poor house".
The AAP re-posted that photo on X - with fire emojis - on Wednesday morning.
Sanjay Singh's father, Dinesh Singh, said the family cooperated with the police and nothing was found in the house. “I told Sanjay not to worry and that the truth will win. We are not worried about his arrest,” he said.
The liquor policy case is being investigated by both the CBI and the ED. Under the policy, introduced in November 2021, the government withdrew from retail sale of liquor and allowed private licensees to run stores. In July 2022, Delhi Chief Secretary Naresh Kumar flagged gross violations in the policy and alleged "undue benefits" to liquor licensees.
The liquor policy and the alleged "corruption" has also been at the centre of various flashpoints between the BJP and the AAP as well as Lieutenant Governor VK Saxena and the Delhi government.