According to the police, the flag was hoisted at a house in Vedupar Mustaquil village under the Tariya Sujan police station area of Kushinagar on Friday at around 11 am.
Additional Superintendent of Police (SP) Ritesh Kumar Singh said that the flag was removed as soon as police got information about it.
The arrested accused has been identified as Salman (21). A case has been registered against Salman and his aunt Shahnaz (22), who made the flag.
Apart from this, the police has also booked a person named Imran under the Juvenile Justice Act for helping in hoisting the flag.