Dr Jagdish Singh Sagar was nabbed from a hotel in Mumbai last night with the help of Maharashtra Police, Inspector General (IG) V K Maheshwari told reporters here.
At the time of arrest, Sagar (42), a resident of the city, was found wearing gold ornaments weighing around half a kg, he said.
As many as 20 members of the gang had been arrested earlier by the police. These members, all youths, used to write the entrance exam for admission to medical colleges in MP on behalf of other candidates, police sources said.
The gang, which was active for the last three years, mostly targeted medical aspirants from neighbouring Uttar Pradesh, he said.
Sagar was produced before a local court, which remanded him in seven-day police custody.
His interrogation may lead to more arrests, the IG added.