Ashok Jain, a former councillor of the Municipal Corporation of Delhi (MCD), was arrested on Wednesday for his alleged involvement in murdering a city-based builder last year, police said.
Jain was arrested from Delhi Police's Crime Branch office in Chanakyapuri after he was being called for questioning in the case of Vijay Dhaiya's murder at his Hauz Qazi home in September last year.
"We have arrested Jain after his direct involvement in the murder was established. He would be produced before a city court on Thursday," said Delhi Police spokesman Rajan Bhagat.
Police said he had paid money to goons to eliminate Dhaiya following a property dispute.
In 2004, the Congress party suspended Jain for six years after the Central Bureau Of Investigation (CBI) caught him red-handed taking a bribe of Rs 100,000 from a builder at his Sitaram Bazar office in north Delhi. He was released on bail a month later.
At that time he was the deputy chairman of the MCD Standing Committee.