The 56-year-old Rathore, a five time MLA, was arrested by the CBI amid slogan-shouting by his supporters who had assembled at the agency's local office.
The high-profile arrest of Rathore comes nearly six weeks after the CBI arrested absconding Additional Director General of Rajasthan Police A K Jain, who had been named in the charge sheet by the CBI for his alleged involvement in the fake encounter of Dara Singh.
In its charge-sheet filed last year in June, CBI alleged that Dara Singh was taken into illegal custody by the SOG officials from Jaipur Airport and was taken to a lonely place near Amber where he was kept hostage till October 23, 2006, when he was killed in a planned manner.
"The circumstantial evidence shows clearly that Dara was murdered in cold blood by SOG personnel and the same was duly monitored by ADG Police A K Jain, SP SOG A Ponnuchammi and Additional SP Arshad Ali along with other officials and during this entire period Rajendra Rathore (a sitting BJP MLA) was on telephonic touch with Jain, ADGP," the charge-sheet had said.
However, Rathore, before his arrest claimed that he was being implicated falsely at the behest of the Congress government.
"I did not know the person who was killed in the encounter before the incident was reported in newspapers next day in October 2006," the former Public Works Minister said.
"It is very unfortunate that I am being implicated falsely but it is fortunate that you all are gathered here to give me moral support. I will return and resume my work to strengthen the party," he said before his arrest at a public meeting which was attended by BJP leaders including Vasundhara Raje.