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They said Deshmukh, 71, has been arrested as per the provisions of the Prevention of Money Laundering Act (PMLA).
They claimed the senior NCP leader was evasive during questioning and the agency will seek his custody after they produce him before a local court here on Tuesday.
The politician arrived at the ED office in the Ballard Estate area of south Mumbai around 11:40 AM accompanied by his lawyer and his associates and was soon after put under grilling sessions with some breaks in between, sources said.
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The money laundering case against Deshmukh and others was made out after the CBI booked him in a corruption case related to allegations of at least Rs 100 crore bribery made by former Mumbai police commissioner Param Bir Singh.