An official said that 45 SIM cards had been recovered from his rented Delhi home.
A graphic designer was arrested for allegedly duping people by promising them iPhones at cheap rates.
Cuffe Parade police said that Riteshkumar Ramveer Bharadwaj, 23 had created four fake websites and would lure people with promises of delivering them cheap phones.
"Bharadwaj is a resident of Sultanpuri in Delhi and is a B.Com student who has done a course in graphics designing.
He would advertise his sites on social media apps, Instagram and shopping websites," said Rashmi Jadhav, senior inspector of Cuffe Parade police station.
She said that one of the victims, a resident of Cuffe Parade, was offered an iPhone 6S by the accused for a sum of 9,999 and Rs 199 as shipping charges.
"He filed a complaint after he did not get his phone despite paying Bharadwaj money through Paytm. Bharadwaj was arrested yesterday after police traced his mobile phone tower location to Sultanpuri in Delhi," the official said.
An official said that 45 SIM cards had been recovered from his rented Delhi home.
Bharadwaj is currently in police custody and further investigations into the case were underway, police said.