Ramesh Latke was a two-term Shiv Sena politician from Mumbai's Andheri East Assembly district.
The woman deboarded a passenger train with a fellow passenger as it was leaving the railway station, according to video of the incident.
Under the relevant sections of the Prevention of Money Laundering Act, the officer from the 2000 batch of the Indian Administrative Service (IAS) has been placed into ED custody (PMLA).