He was detained by the Sialkot Police on Monday. His official house was declared a sub-jail.
The former DPO's arrest was ordered by Prime Minister Yousaf Raza Gilani and Punjab Chief Minister Shahbaz Sharif.
Earlier, he recorded his statement before Justice (retd) Kazim Ali Malik, who is probing the matter on the orders of the Supreme Court.
Waqar Chauhan has been charged with negligence and for failing to stop the merciless lynching of two tennage brothers in Sialkot.
IG Punjab Tariq Saleem Dogar visited Sialkot. He held separate meetings with the former and the new DPOs.
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