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Union head Elba Esther Gordillo, known as Mexico's most powerful woman, has been arrested on corruption charges, BBC reported. 

Ms Gordillo, who runs the 1.5 million-member Mexican teachers' union, is alleged to have diverted about $200m from union funds to personal accounts.

No-one from her legal team has responded to the allegations, but in the past she has denied any wrongdoing in handling the funds.

The arrest came after major reforms to the education system on Monday.

President Enrique Pena Nieto signed the sweeping reforms, which seek to change a system dominated by Ms Gordillo in which teaching positions could be sold or inherited.

"We are looking at a case in which the funds of education workers have been illegally misused, for the benefit of several people, among them Elba Esther Gordillo," Attorney General Jesus Murillo Karam said.

His office alleges Ms Gordillo, 68, spent the funds on plastic surgery and a luxury home.

The BBC's Will Grant in Mexico City says that Ms Gordillo is one of the highest profile figures in Mexican political life, known simply as "la maestra" or "the teacher."

For more than 20 years she has led the National Union of Education Workers (SNTE).

With an estimated 1.5 million members, Ms Gordillo has held real influence over governments and individual presidents by persuading her union members to vote as a single bloc.

The teachers were also responsible for manning polling stations on election day.

Her union is also very wealthy, and can count on an annual budget of tens of millions of dollars.

It is on claims that she mishandled those funds, allegedly diverting money intended for the union's coffers to her personal accounts, that she has now been arrested.