Shiv Kumar Gupta was arrested from Gudamba area here on a case of forgery registered against him by one Uttam Agarwal.
Agarwal has alleged that Gupta had entered into an agreement with him for construction of a building, however, later, he sold it to some one else, police said.
Gupta, who was in BSP before being sacked from the party on some charges, had also contested last mayoral polls.
The police is probing the matter.
