He has been in police custody for the last seven days, the sources said, adding that further details are awaited.
Brar had claimed the responsibility for the brutal murder of Moosewala on May 29, on behalf of the Lawrence Bishnoi gang.
On June 2, a Red Corner Notice (RCN) was issued against Brar in another murder case.
Satinderjit Singh, alias Goldy Brar, a native of Sri Muktsar Sahib and having gone to Canada on a student visa in 2017, is an active member of Lawrence Bishnoi gang.
The killing of Moosewala was executed by six sharpshooters and four of them were arrested and two shot dead in a police encounter.
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