The anti-corruption branch of the Punjab Police arrested Vijay Singla shortly after he was sacked from the state cabinet on corruption charges by chief minister Bhagwant Mann on Tuesday.
Mann sacked state health and family welfare minister Singla from his cabinet "for taking commission". Singla has been dismissed from the ministerial post on complaints of corruption against him.
Mann also referred Singla's case to the police and directed them to register a case against him.
The comes days after Aam Aadmi Party (AAP) supremo Arvind Kejriwal had promised to crack down on corruption in Punjab where the party has been voted to power with a thumping majority earlier this year.
After Bhagwant Mann was elected as the CM of Punjab in March this year, Kejriwal had said the AAP government has eradicated corruption in Delhi, and Mann along with his cabinet colleagues will also "now run an honest government in Punjab as well".
The 52-year-old was elected as an MLA from the Mansa Assembly seat. He had defeated Punjabi singer and Congress candidate Shubhdeep Singh Sidhu also called Sidhu Moosewala. Singla is a dental surgeon.