The Mumbai cyber cell's SIT on Sunday arrested actor Sahil Khan in connection with the Mahadev betting app case, a police official here said.
The actor was apprehended from Jagdalpur in Chhattisgarh on Saturday after the Bombay High Court rejected his pre-arrest bail plea, he said.
He was subsequently brought to Mumbai and placed under arrest, the official said.
Khan was recently questioned by the Special Investigation Team (SIT) formed in connection with the case.
The actor, known for films like Style' and Excuse Me', has become a fitness expert.
The Mumbai police had earlier arrested one person in connection with the case, the official said.
Khan is the second person to be arrested by the city police in the case, he said.
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The SIT has been conducting a probe into the alleged illegal transactions between certain financial and real estate firms in the state and the promoters of the controversial Mahadev betting app.
The size of the scam is about Rs 15,000 crore, as per the first information report (FIR) registered by the Matunga police here in the case.
An investigation is underway against Khan and 31 other individuals. The probe involves examining their bank accounts, mobile phones, laptops, and all technical equipment, according to the police.
While the Enforcement Directorate (ED) is investigating money laundering angle in the Mahadev betting app case, Mumbai police have registered a separate case against 32 persons.
Notably, Chhattisgarh's Anti-Corruption Bureau (ACB)/Economic Offence Wing (EOW) on April 24 said it has arrested two persons - from New Delhi and Goa - in connection with the alleged illegal operations of the Mahadev online gaming and betting application that purportedly involved senior politicians and bureaucrats from that state.
The ED has separately arrested nine persons so far as part of its probe in the money laundering-linked case.