The accused, Aamir Ali Khairani, who came to India on April 24, was arrested following a tip-off, police said.
"Khairani, who hails from Indore, had obtained a fake passport from Hyderabad through an agent using forged documents in the name of Rajesh Agrawal," Amarendar Singh, Additional Superintendent of Police (ASP) of Indore Crime Branch, told reporters.
"On the basis of that fake passport, he entered America in the 1990s to work in Texas, where he later settled down," he added.
According to Singh, during his interrogation the accused told them that he has become a US citizen.
Police suspect that Khairani went to the US with the help of a human-trafficking gang.
Further investigation is on, he said.
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