A Delhi court on Tuesday extended AAP Rajya Sabha MP Sanjay Singh's ED custody by three days.

He was produced before Special Judge MK Nagpal of Rouse Avenue Court, on expiry of his five-day police custody, in connection with a money laundering case pertaining to the now-scrapped excise policy, an officer said.

The judge, after hearing the arguments, extended Singh's custody till October 13. Senior Advocate Rebecca John appeared for Singh.

The financial probe agency on October 4 arrested Singh after carrying out searches at his residence in the North Avenue area.

Special Public Prosecutor NK Matta, appearing for the ED, had said that Rs 2 crore was paid in cash to Singh. The agency further claimed that searches were conducted on Wednesday and the statement was also recorded.

Matta said that 239 places were searched and documents were found. It was alleged that an employee of Dinesh Arora, an accused in the case who later turned approver, allegedly delivered Rs 2 crore to Singh's house on two occasions. Matta had further stated that the ED has to confront Singh with digital evidence.

The ED's Special Counsel Zoheb Hossain had also appeared through video conference.

According to a top ED officer, Singh was arrested under Sections of the Prevention of Money Laundering Act (PMLA). It is the ED's case that Singh played a key role in the formulation and implementation of the excise policy which was aimed at benefiting certain liquor manufacturers, wholesalers and retailers.

Singh is the second top leader of the AAP to be arrested in this case after former Deputy Chief Minister Manish Sisodia, who was arrested by the CBI in February this year and by the ED in March.

The ED has filed four charge sheets in the case and also mentioned Singh’s name in it.

The ED's money laundering case is based on a CBI FIR filed last year in August on the complaint of alleged irregularities in the excise policy case.