The former Maharashtra deputy chief minister was questioned here on Monday by a team of ED officials in connection with corruption cases lodged against him.
Earlier in the day, the NCP leader was accompanied by senior party colleague Jitendra Awhad, several legislators and a large number of party activists from Nashik.
They raised slogans hailing Bhujbal as he entered the ED office.
The ED had on February 1 arrested Bhujbal's nephew Sameer Bhujbal. Later last month, it questioned Bhujbal's son Pankaj Bhujbal, a legislator.
Hailing the NCP leader's arrest in the money laundering case BJP leader Kirit Somaiya said,"At last Chhagan Bhujbal has been arrested. Now it is turn of Irrigation Scam, Ajit Pawar and Sunil Tatkare to follow Bhujbal."
Bhujbal and his party, the NCP, have termed the ED's actions a "political vendetta".
"It is BJP's vendetta politics, will fight it politically & in court of law," NCP leader Nawab Malik told ANI following Bhujbal's arrest.
The ED's probe follows a Bombay High Court ruling in January when it sought progress reports from the Maharashtra Anti-Corruption Bureau and the ED within four weeks on their investigations against the Bhujbals.
(With inputs from agencies)