PATNA, Nov 30 Indian police on Monday arrested a regional politician suspected of embezzling up to $650 million during his five years in ministerial posts in an impoverished eastern state, officials said.

Madhu Koda was taken into custody in his constituency of Chaibasa, in the state of Jharkhand, on allegations of possessing wealth exceeding his known sources of income — an offence carrying a prison term of up to seven years.

“Following the arrest, Koda has been taken to (Jharkhand state capital) Ranchi under high security,” said Chaibasa police chief Akhilesh Jha, who detained the politician.

Later in the day, the 38-year-old Koda appeared in court and was ordered to spend 14 days in prison while authorities investigate, Jha said.

Koda's arrest came after he failed to present himself before authorities for questioning, police said. He was arrested after evading several summons issued by India's Enforcement Directorate, which probes economic crimes, police said.

Federal tax officials say Koda swindled nearly $650 million during his time as mines minister and chief minister in Jharkhand, known for its mineral wealth, abject poverty and raging Maoist insurgency.

Tax authorities have made dozens of raids and say they have found cash and a paper trail allegedly showing Koda and his accomplices bought mines in Africa and invested in India, Thailand, Dubai, South Korea, Bhutan and elsewhere.

Koda, known for his lavish lifestyle with frequent foreign trips, worked his way up from being a labourer in an iron ore mine and entered politics, winning a state assembly seat in 2000.—AFP