Ganesh, native of Chodavaram and a rubber stamp maker by profession, made stamps bearing the name of Sanketika Polytechnic College and an APSRTC stamp, to make fake passes for students.
He sold forged passes to as many as 21 people for Rs 1,500 each.
Waltair Depot Manager, Divya, had lodged a complaint with III-Town police station few days back. Police today arrested Ganesh and V D Naidu, one of the buyers.
Police are looking for other 20 buyers.