Rajwinder Singh alias Raju Rashee, was arrested during checking near minor canal of Jasran village, Fatehgarh Sahib SSP, H S Mann told reporters today.
They recovered 5 Kg Pseudoephedrine, used for preparing drug, worth Rs 5 crore in international market from his car.
A case was registered against the accused at Mandi Gobindgarh police station under sections 22, 61, 85 of NDPS Act.
Rajwinder is a relative of drug peddler Ravi Deol, who in turn is a relative of another accused boxer Head Constable Ram Singh.
Further investigations were on, SSP Mann added.
On Tuesday, police arrested Bhola's another aide Devinder Singh of Lehra Mohabat, Bathinda.
Bhola, Deol and dismissed Sub Inspector Sarabjit Singh were absconding.
Rajwinder Singh is the 18th person to be arrested following recovery of 26 kgs of heroin worth over Rs 100 crore from the house of a Canada-based NRI Anoop Singh Kahlon at Zirakpur in Mohali on March 3.
The others arrested include Bhindranwale Tigers Force (BTF) terrorist Kulbir Singh Assandh, another NRI Kulwant Singh, Kahlon's driver Kulwinder Singh alias Rockey, Kuldip Singh (father of Rockey) and a retired DSP of UP Police Kirpal Singh (arrested from Meerut) besides Vijender's sparring partner boxer Ram Singh.
Punjab Police had on March 31 said that Singh had consumed heroin 12 times after procuring it from alleged drug smugglers including Kahlon. They however, said that the boxer was not involved in the smuggling of narcotics.
Vijender has denied any involvement in the drugs racket.
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