Ramgoolam, 67, who accepted defeat in parliamentary polls in December, was arrested and held in prison for questioning this afternoon.
According to sources, scuffles broke out between his supporters and those of the government on the streets of the capital, but police separated the two sides.
However, the situation remained tense on the popular tourist island, the reporter added.
In December, Ramgoolam, who had wanted to run for the presidency had  won the polls but in a crushing defeat even lost his own parliamentary seat, said the "elections were carried out with respect to democracy."
Reports said the arrest was connected to a burglary that took place in 2011 at a beach property belonging to Ramgoolam.
Police have been seeking to question Ramgoolam for allegedly lying about his presence at the scene of the robbery, and asking a businessman to give false testimony to the police. It remains unclear why Ramgoolam may have lied about his presence at the property.
Police are also investigating the alleged suicide in custody of a suspect in the burglary. The ex-prime minister has denied any foul play and has accused his critics of trying to discredit him.


Latest News from World News Desk