Khan, who is also a real estate consultant, is under the scanner for suspected money laundering and for allegedly transferring cash and valuable assets outside the country by unlawful means with the help of foreign nationals.
The previous searches at Khan's Koregaon home were in Jan 2007 when the Income Tax department had raided the premises.
The 53-year old stud farm owner, who was detained in Pune on Mar 7, was brought to Mumbai at about 6 pm and after a series of interrogations was arrested around the midnight. He will be produced in the court on Mar 8.
ED officials inspected documents pertaining to alleged hawala transactions. He was also grilled about his money laundering deals. Khan was finally arrested under different sections of the Prevention of Money Laundering Act.
Supreme Court of India had pulled up the government in the black-money and issued a deadline to probe allegations of tax-evasion and money laundering against Hasan Ali Khan. The arrest has been made well before the deadline.
The Hindustan Times has cited anonymous sources saying that searches were carried out at the premises of Khan and his associates at Pune, Mumbai, Gurgaon, Kolkata and Hyderabad.