Dharmedendra Sharma from Joura town in neighbouring Morena district had been posing as a Mandi Inspector in the local market since the past one-and-a-half years, police said.
He was arrested last evening from the market area here by the personnel of Inderganj police station following a tip-off, they said.
Cash of Rs one lakh, an American pistol, eight ATM cards, a car and large number of fake letter-heads of Chief Minister's office were seized from him, they said, adding, he also owns a house here.
A case has been registered against him in this regard and further investigations are on, they said.