Pandey, MLA from Tarari in Bhojpur district, was arrested from the office of the Superintendent of Police, whom he had gone to meet.
Confirming the MLA's arrest, SP Navin Chand Jha said the legislator has been handed over to the police station for further action.
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Lambu Sharma had escaped from custody along with another prisoner Akhilesh Upadhyaya while being produced in Ara court on January 23 this year following an explosion triggered by a human bomb. Two persons were killed and around two dozen were injured in the incident.
While Upadhyaya was arrested soon, Sharma remained an absconder and was arrested in New Delhi by a joint team of Bihar Police and Delhi Police on June 24 and was later brought back to Ara and kept in jail.
Earlier on July 1, Additional Director General of Police (Headquarters) Sunil Kumar had said that Sharma in his confessional statement had also told the Delhi Police that Pandey gave him a Rs 50 lakh contract to kill Uttar Pradesh gangster-turned politician and MLA from Mau constituency Mukhtar Ansari.
The JD(U) MLA has been facing many cases of kidnapping and extortion.
Pandey is the second legislator of ruling JD(U) to be arrested by police.
Last month, Patna police had arrested muscleman MLA from Mokama Anant Singh in connection with kidnapping of a builder of Bihta in November last year.
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