The Gujarat High Court earlier in the day rejected Setalvad's anticipatory bail plea in connection with the Gulbarg society embezzlement case.
The police had reached Setalvad's Mumbai residence to arrest her, reports said.
A case has been filed against the social activist in Gujarat.
The FIR was lodged against Setalvad in 2014 for allegedly misusing Rs. 1.5 crores of donations.
"They had collected the money to convert the 2002 riot-hit Gulbarg Society into a riots museum," CNN-IBN reported.
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