CBI had earlier listed Madhavan as accused along with six others in the case. He had been posted at the international airport here earlier.
Madhavan was arrested this morning under the Prevention of Corruption Act, CBI sources said. He will be produced before a CBI special court tomorrow.
Two customs preventive officers -- Sunil Kumar and Sanjay Kumar Soni are also listed as accused in the case. They are yet to be arrested.
The smuggling racket came to light recently when Customs officials arrested Arifa and Asifa who had managed to come out of the green channel allegedly with the help of customs officials at the airport.
The two women were arrested as they were about to leave the airport. The gold had been concealed in pouches of a jacket they had worn along with the burqa.