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Aijaz Dhebar, 47, is a ruling party mayor in the Congress-ruled state.
His elder brother Anwar, who runs a liquor business, was taken into custody under the Prevention of Money Laundering Act (PMLA) from a Raipur hotel in the morning, the sources said.
In a security escort of the CRPF, he was produced before a court in Raipur for seeking his further custody, they said.
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The ED, sometime back, had conducted searches in this case in Chhattisgarh and some other locations.