Railway Minister Lalu Prasad Yadav's brother-in-law Sadhu Yadav surrendered in a Patna court on Monday.
He had been charged with irregularities in the use of millions of rupees meant for flood relief in Bihar.
He was sent to judicial custody for 14 days after his surrender.
The Rashtriya Janata Dal (RJD) MP from Gopalgunj surrendered in the special vigilance court after the Supreme Court on Friday dismissed his bail plea in another case related to the flood relief scam.
Last month, the vigilance court issued an arrest warrant against Yadav and ordered the attachment of his properties in Patna, Gopalganj and New Delhi. He was evading arrest since then.
The court has fixed the hearing of his bail petition for Wednesday, a court official said.
Yadav, the brother of former Bihar chief minister Rabri Devi, is accused of accepting a transfer of Rs 6,00,000 into his account by Santosh Jha, the kingpin of the flood relief scandal.
He maintains the money came from the sale of a car he had bought from Delhi businessman Sumit Jenna.
Jenna, however, had denied selling the car to Yadav.
Early this year, the state vigilance bureau filed a chargesheet against Yadav in the case. He has been charged with receiving slush money from Jha.