Opposition political parties on Monday welcomed the arrest of convicted fraudster Schabir Shaik.

The Democratic Alliance (DA) said the party was pleased the correctional services department was taking this matter seriously.

"These two incidents indicate that Mr Shaik is incapable of staying within the parameters of his parole conditions, and clearly does not appear to be suffering from the terminal illness that was the basis for his medical parole.

"We urge the [parole] board to take decisive action against Mr Shaik if their investigation finds him in violation of his parole. Failure to do so will cast serious doubts on the credibility of the board, the parole process, and the department of correctional services," the DA said in a statement.

The Freedom Front Plus said Shaik's behaviour showed he was not terminally ill and that he must go back to jail to complete his sentence.

Party spokesperson Pieter Groenewald said Shaik was an embarrassment to correctional services.

"It is high time that action is taken against Shaik... his arrogant actions show that he thinks he is above the law."

Independent Democrats secretary-general Haniff Hoosen said: "Clearly this is the end of the road for a man who has conducted himself as an 'untouchable' and has managed to dupe the government into believing that he was gravely ill."

Correctional Services Minister Nosiviwe Mapisa-Nqakula told Eyewitness News earlier in the day that correctional officers picked Shaik up from his house. Shaik, whose release from prison on medical parole caused a major outcry in 2009, was taken to the Durban Westville Prison.

"Mr Schabir Shaik has been booked in at the Westville Correctional facility. We took a decision last night," the minister said.

Shaik will be held for 72 hours while the two incidents of assault allegedly involving Shaik are investigated.

The Sunday Times reported Shaik hit a man, Mohamed Ismail, outside a mosque in Durban on Friday. He had apparently parked in the man, who was trying to get to his daughter in hospital.

The police are already investigating Shaik for allegedly choking and slapping a Sunday Tribune reporter on a golf course about two weeks ago.

In 2005 Shaik was convicted of fraud and corruption and sent to jail for 15 years. The current president, Jacob Zuma, at the time was axed as deputy president following Shaik's conviction. Shaik was Zuma's financial adviser.

Shaik served only two years and four months of his 15-year term. He was released on medical parole shortly before Zuma became president.