CPN-UML vice-chair and former finance minister Bishnu Paudel was arrested in Surkhet on Monday in connection with an ongoing money laundering investigation.

The Department of Money Laundering Investigation (DMLI), which has been investigating Paudel, issued an arrest warrant, following which Surkhet Police took him into custody.

A Home Ministry source confirmed the arrest, saying Paudel was detained at the request of the department.

Superintendent of Police Thakur Prasad Pokharel, from the District Police Office Surkhet, said Paudel was taken to Nepalgunj shortly after his arrest.

Deputy Inspector General of Police Jayaraj Sapkota of Karnali Province said Paudel was briefly held at the District Police Office in Surkhet before being transferred.

Police are making arrangements to fly him to Kathmandu via Nepalgunj, Sapkota said.

Paudel had travelled to Surkhet on Sunday to attend the UML's internal election review and organisational restructuring programme.

The DMLI has not disclosed details of the allegations or the investigation.