Babalakin was arrested as he left the Lagos University Teaching Hospital (LUTH) where he was believed to have fled to in order to prevent being arrested and arraigned in court. His lawyer had told the court that his client could not appear in court as he suddenly took ill and had to be taken to the hospital. The undisclosed ailment for which he was receiving treatment reportedly started less than 12 hours before he was to be arraigned at a court in Lagos.
Sequel to his arrest, he was taken to the Ikoyi office of the EFCC. Speculations are rife that he would be granted bail as the next hearing in his money laundering case is slated for January 17, 2013.