Dadhe along with three other members were arrested late last night in this connection, hours before the elections for the governing body of the 125-year-old organisation were scheduled to be held, they said.
A case of forgery and cheating has been registered against eight former office-bearers, including Dadhe.
Last November, SPM's governing body was dissolved by State Charity Commissioner Office after allegations of financial irregularities were levelled against it.
SP Mandali runs education institutes such as Sir Parshurambhau College in Pune, Ramnarain Ruia College and L N Welingkar Institute of Management in Mumbai.
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A panel which is contesting against Dadhe's group tipped the police and the election committee yesterday of blank ballot papers being kept at the office of former chairman, police said.
"Upon which senior police officials and election committee members swooped on the office to take stock of the situation and found hundreds of blank ballot papers kept in the cupboard of Dadhe," they said.
"We then arrested Dadhe and other three former members under IPC sections 420, 468 and 471," a police official said.
The results will be out tomorrow.