Manoj Baitha had become a major source of embarrassment for the BJP, which rules Bihar in alliance with Chief Minister Nitish Kumar's Janata Dal United (JDU) as the opposition launched an aggressive political attack over the incident.
Sources say he surrendered after the BJP leadership in the state firmly asked him to do so as the outrage refused to die down.
After his arrest, he was taken to a hospital in Patna to have the injuries he purportedly suffered in the incident treated. He was not taken to a hospital in Muzaffarpur as police feared a confrontation with relatives of the victims admitted there, sources said.
Manoj Baitha, was allegedly driving the SUV while he was drunk.
He will be produced in a court later in the day.
At least nine children were killed and about 20 injured when the BJP leader's speeding Bolero ploughed through them outside a government school building on the outskirts of Muzaffarpur on Saturday. Mr Baitha, who was allegedly behind the wheel, then got off from the car and ran away.
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