Kumar, MLA from Kondli in East Delhi, was questioned in New Ashok Vihar Police station in connection with the case and later arrested.
"We have arrested him in a case of cheating. The case was registered in New Ashok Vihar Police station," Joint Commissioner of Police, Eastern Range, Sanjay Beniwal told PTI.
He said the MLA has been charged under Section 468 (forgery for purpose of cheating), 471 (using as genuine forged document, 420 (cheating), 120B (criminal conspiracy) of IPC.
Investigators said a case of cheating was registered against Kumar last year.
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"This is an old matter related to land fraud," Delhi Police Commissioner B S Bassi said.
A case of cheating was registered against Kumar following allegations that he duped his business partner Vinod of Rs 6 lakh.
Vinod had alleged in his complaint to the police that Manoj used to work as a property dealer before venturing into politics.