The 36-year-old Raut, against whom the CBI had managed to secure an Interpol Red Corner Notice on February one, was picked up by sleuths of Economic Offences Wing of the CBI from Lodhi Gardens area in South Delhi, agency sources said.

While there was no clear word as to how the arrest was effected, the sources said that the CBI had roped in the relatives and parents of Raut to advice him to help the agency unravel the racket.

CBI teams had fanned throughout national capital and adjoining areas and were carrying out searches at almost all places where Raut could have taken shelter.

It immediately began questioning Raut and would be producing him before the designated court tomorrow to seek his remand, the sources said.

The arrest may come as a relief to the Nepalese police, who were in the lookout for him after reports suggested he along with his brother were in the Himalayan nation.