The accused, Krishan Pahalwan, had been evading arrest for the past several months and carried a reward of Rs 25,000.
"Pahalwan, along with his associates, had kidnapped one Manjeet Singh in April this year and demanded Rs 10 lakh as ransom... He was also found to be involved in a murder case committed at Meham in Haryana in 1987," said Additional Commissioner of Police (West) Ranveer Singh.
The accused had kidnapped Manjit Singh (32) with whom he dealt in buffalo trade, apart from running a milk dairy in Najafgarh.
Further efforts are on to arrest the remaining accused in the kidnapping case, police added.