Jatinder was arrested under relevant section of Medical Council Act and Section 420 (cheating) of IPC, they said.
It is alleged that Madan had acted as a conduit in a bribery case involving Satnampura Station House Officer (SHO), who was under suspension and is absconding.
The SHO was booked under Sections 7,8 and 13 of Prevention of Corruption Act, police said.
Jatinder is also accused of mediating in giving a bribe of Rs 20,000 to SHO for shielding an alleged drug peddler, who ran a chemist shop without a license and at present in police custody, on March 21.
The SHO in its report had not shown the tablets after allegedly receiving a bribe of Rs 20,000 from the drug peddler, but later returned the amount after the matter leaked.