Inspector Ajay Singh Pawar was arrested on Saturday at around midnight from the Indrapuri locality of the city, an STF official said here today.
Following a tip-off, an STF team raided the area and caught the suspended police officer who had a reward of Rs 10,000 on him.
He was wanted by STF since November last year when a case was registered against him in connection with the scam.
He was produced in a local court yesterday which remanded him in STF custody till July 27.
Pawar had allegedly helped seven candidates, including his son Abhijeet, in clearing the written examination conducted by MPPEB and collected Rs 8 to 10 lakhs from each candidate, he said.
He allegedly had links with accused middlemen Bharat Mishra and MPPEB's chief system analyst Nitin Mahindra.