Dipan Shah was picked up in the wee hours, an official said without elaborating any details.
Last year, Mumbai Mayor Snehal Ambekar had written to BMC chief Ajoy Mehta complaining about the poor quality of newly- constructed roads in the city.
According to police, a case was registered in this regard at Azad Maidan police station on April 27 last year, after the BMC's internal inquiry revealed that more than two dozen roads in the city were of poor quality.
Among the 24 accused arrested in connection with the scam are contractors, site engineers and auditors employed with two private engineering audit firms.
Police suspect that the scam happened after tenders were floated for the construction or reconstruction of roads.
The tenders were allegedly manipulated in such a way that the conditions stipulated would suit only select contractors.