A senior police official, who is part of the team probing the case, said Udayabhanu had been arrested.
Real estate dealer Rajeev was found murdered in a deserted building at Chalakudy in Thrissur district last month.
Justice A Hariprasad of the high court had yesterday turned down the lawyer's anticipatory bail plea, holding that his custodial interrogation was highly essential.
Udayabhanu is the seventh accused in the case.
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