The arrest was a day after Delhi’s High Court rejected his application to seek exemption from arrest, according to Indian daily newspaper The Hindu.

Chidambaram held the ministerial position twice during the decade-long coalition government, led by the Congress party.

Since the election of Narendra Modi as prime minister in 2014, Chidambaram has been a vocal critic of the government.

The accusations, which Chidambaram denied at a press conference the day before his arrest, involve him abusing his position as finance minister and conspiring around the approval of a telecommunications deal in 2006.

Several government officials and his son Karti are also involved in the case – all of them have previously called the allegations unfounded.

According to The Hindu, Chidambaram said: “I have not been accused of any offence. Nor has anyone else, including any member of my family, been accused of any offence.

“In fact, there is no charge sheet by either the CBI or the ED filed before a competent court.

“Yes, there is a widespread impression that grave offences have been committed, and my son and I have committed those offences.

“Nothing can be farther from truth. These are lies spread by pathological liars.”