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Mr Chen, an independence activist and staunch critic of China, was taken to jail after his detention was approved by a court overnight.

It came at the end of a dramatic 24 hours, during which police led a defiant Mr Chen away in handcuffs.

Mr Chen, who stepped down in May, denies all the graft charges and claims they are politically motivated.

He has been taken to Tucheng prison in the suburbs of the capital, Taipei. He can now be held for up to four months, despite not yet having formally been charged.

Police have reportedly tightened security around the jail amid threats from his supporters.