The Kasarwadwali police arrested the constable Anant Prasad Pandey (54), a resident of Nalasopara in the district.
According to police, Pandey, who was attached to the Yellow Gate police station, had not reported to work since December last year.
"Posing as the SPG chief in CBI, he promised various things to different victims between March 2016 and December 2017 and took Rs 88 lakh from them," a police officer said.
"He neither carried out the promised tasks nor returned the money to the victims," he said.
Based on a complaint, the Thane police arrested him from Nalasopara yesterday.
He was produced before a local court, which remanded him in police custody for seven days.