Chidambaram has been in judicial custody since August 21 for his alleged involvement in irregularities in granting of Foreign Investment Promotion Board (FIPB) approval to INX Media during his term as Finance minister.

According to the ED officials, he has been arrested under sections of the Prevention of Money Laundering Act (PMLA) and will be produced before the court later in the day.

Officials said that the ED will demand Congress leader's custodial interrogation to confront him with the evidences gathered in the case so far.

They said he will be asked questions related to kickbacks received by shell companies allegedly floated by his son Karti Chidambaram.

The ED has earlier informed the court that it had identified about two dozen foreign bank accounts, which were used to park kickbacks received from illegal favours granted by the former minister.

The officials said the financial probe agency was in possession of several email exchanges indicating communication between front companies where both senior and junior Chidambaram were the beneficiary owners.

They also said the Congress leader will be confronted with the statements given by at least 13 witnesses, including his private secretary, in the case.

Chidambaram was arrested by the Central Bureau of Investigation (CBI) in INX media case on August 21 after 24-hour long drama. From the CBI custody, he was sent to judicial custody and the CBI court on Tuesday allowed the ED to question him in the case.