A special court for hearing cases filed under the Prevention of Money Laundering Act (PMLA) sent him to ED custody for seven days, beginning Thursday, they said.
Prajapati, who held the mining portfolio in the Samajwadi Party government led by Chief Minister Akhilesh Yadav, is also accused of raping a woman and attempting to molest her minor daughter along with others.
In this case, he was arrested and sent to jail on March 15, 2017 and has been in judicial custody since then.
The ED had raided a number of his premises and those of his associated at Lucknow, Kanpur and Amethi in December last year.
The agency had then said that during the raids it seized Rs 1.42 lakh cash, demonetised currency valuing Rs 11.50 lakh, stamp papers worth Rs 5 lakh, some property-related documents and computers.
"During the search, more than 100 registries of different properties spread across Lucknow, Kanpur, Amethi, Sitapur and others were unearthed.
"In addition, allotment letters of four villas in Mumbai, valued at Rs 2.5 crore each, belonging to the family members of the former minister were also seized," it had said in a statement.
The agency added its probe found that "after the arrest of Prajapati in March, 2017 in a rape case, his sons have clandestinely sold off some of the properties for personal gains and influencing key witnesses in the trial case against him."
It had claimed that "cash deposits in the bank accounts of Prajapati family members and companies were found to be non-commensurate with their income tax filings".
"It was revealed that during the period the accused (Prajapati) remained minister in the UP government his company rose exponentially in net worth which he could not explain satisfactorily during his examination," the ED had said.
The ED added that his family members "had paid substantial tax on undisclosed income" under the Union government initiated Income Declaration Scheme (IDS) or the black money declaration scheme of 2016.
It said the probe against benami asset holders of Prajapati "revealed that they were daily wage earners from humble backgrounds and incapable of owning or acquiring the properties found during investigation".
"Twenty-three properties ranging between Rs 3-36 lakh in the name of a single benami, and whose residence was also searched, have also been found," the agency had said.
The ED is also probing his role in connection with the renewal of sand mining leases in Fatehpur district between 2012-2016.
It has been alleged in this case that Prajapati, "in collusion with other government officials and private persons, got the mining leases renewed without following proper process of e-tendering and thereby aiding and abetting illegal mining in the district.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.