Dhananajayan KG, who had been on the run for three years, was arrested on Tuesday evening.
Police said Dhananajayan, from Thrissur in Kerala, claimed he was a former MP and farmer leader when he met realtor Sameer Kohli.
He also claimed to have a realty business, but police have not found any office registered in his name in Delhi or NCR.
Police are now checking on how Dhananajayan could afford to stay in an upmarket apartment in Dwarka and maintain a lavish lifestyle.
His daughter, police said, is pursuing an MBA from a top university in the US.
Kohli, who owns Kohli Housing and Development Pvt Ltd, told police that he had been cheated of Rs 3 crore. He claimed that he was impressed by Dhananajayan's claim that he owned around 300 acres of land in Gurgaon.
“In 2009, when the deal was to be fixed, Kohli met Dhananajayan at a five-star hotel. The complainant agreed to purchase the land and gave him a token sum of Rs 3 crore. Rs 1 crore was paid in cash, the remaining amount was paid by cheque. After encashing the cheque, Dhananajayan disappeared and was later declared a proclaimed offender,” Deputy Commissioner of Police (Crime) S B S Tyagi said.
Dhananajayan was arrested from Sector-12A in Dwarka. During questioning, Dhananajayan told police that he studied at Christ College in Irinjalakuda, Kerala.
Later, he completed his LLB from Renukacharya College of Law in Bangalore.
“He started the business of export and import of fertilisers, coal and chemicals. He also got into the property business. He took to crime after he suffered a loss in business. He was neither an MBBS nor had a doctorate, but posed as a PhD scholar,” a police officer said.
Dhananjayan also claimed to have political contacts. “He has no office in Delhi or elsewhere. He came to the Capital around 20 years ago and claimed to have worked as a property dealer. We have handed him over to the Economic Offences Wing who will investigate the past cases against him,” the officer said.