They said Babu was arrested late on Friday night by the Enforcement Directorate (ED) under provisions of the Prevention of Money Laundering Act (PMLA).
The agency was expected to produce the accused before a special court here on Saturday for seeking further custody, the officials added.
It was Babu, on whose complaint the Central Bureau of Investigation (CBI) had registered a criminal FIR on charges of corruption against its former special director Rakesh Asthana during the infamous fight between the number one man in the agency, the then CBI director Alok Verma and the number two, Asthana.
The ED had registered a criminal case under the anti-money laundering law against Qureshi in 2017 for alleged corruption in connivance with government officials.
Former CBI director A.P. Singh is also being probed in this case by the ED.