BRS leader K Kavitha was rushed to a Delhi hospital after her health deteriorated in Tihar jail on Tuesday.
"She was taken to Deen Dayal Upadhyay (DDU) Hospital due to some health issues," an official said.
Ms Kavitha was brought back to prison in two hours after undergoing some tests at the hospital, said the official.
The Enforcement Directorate, the agency which investigates financial crimes, arrested K Kavitha, daughter of former Chief Minister KCR, from her Banjara Hills residence in Hyderabad on March 15 in connection with the alleged Delhi liquor policy scam.
A month later she was arrested by CBI from Tihar jail in a money laundering case related to the alleged scam.
The case pertains to alleged corruption and money laundering in the formulation and implementation of the Delhi government's liquor policy for 2021-22 which was later scrapped.
The 46-year-old politician from Telangana is currently in judicial custody in both the cases.
On July 12, the Rouse Avenue court deferred hearing on K Kavitha's petition seeking default bail in Delhi liquor policy case.
Special judge Kaveri Baweja listed the matter on July 22 for further hearing.