The accused Aslam Darjee (25), a resident of Bahraich district in Uttar Pradesh, was apprehended on Wednesday and the minor boy was rescued by the Kandivali police squad.
The boy was abducted at about 11 pm on January 23 from near his residence in Ganesh Nagar, said Deputy Police Commissioner Balsingh Rajput.
As frantic search for the boy yielded no result, the family registered a case of kidnapping, he said.
One of the staff members Aslam had a heated argument with Khan over Rs 45,000, which he had lent to the latter. It has also come to light that Aslam was spotted in Kandivali, a day before the abduction, said police.
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As the needle of suspicion pointed to Aslam's role in the crime, a hunt was launched for him when it was found that he had left for Uttar Pradesh.
The victim and the accused were brought to Mumbai; police said, adding that further probe is on.