New Delhi, Nov 11 (IANS): The Enforcement Directorate (ED) on Thursday arrested Punjab Congress leader Sukhpal Singh Khaira in connection with a money-laundering case linked to drugs trafficking.

He was taken into custody by the ED's Delhi team from Punjab under the provisions of Prevention of Money Laundering Act (PMLA).

Earlier in March, the central probe agency had carried out searches at eight locations linked to Khaira in Chandigarh, and also at the property of his son-in-law in Delhi, in connection with a drugs money laundering and a fake passport racket case.

Khaira was being investigated after the ED took cognisance of the two separate cases. According to sources, the central probe agency has unearthed a Rs 3.5 crore money trail in this connection.

During the probe, some top fashion designers were also summoned. They had designed Khaira's daughter's trousseau and were allegedly partly paid in cash, sources said.

Khaira recently re-joined the Congress, leaving the Aam Aadmi Party and his own outfit, the Punjab Ekta Party.

He was elected to the state Assembly in 2017 on a ticket of the Aam Aadmi Party. However, he later resigned from the AAP citing the 'dictatorial' attitude of party chief Arvind Kejriwal.

Earlier, Khaira had denied any wrongdoing. His counsel had attributed the raid to Khaira supporting the ongoing farmers' agitation. Khaira had also sought a judicial inquiry into the death of Navreet Singh, a young protester who had died during the tractor rally by the farmers on Republic Day in the national capital this year.