The Crime Branch of Thane police has arrested 18 people from Maharashtra and Goa since last night for their alleged involvement in the leak.
Thane police said 350 students were also detained for questioning and later let off.
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The examinations were held for a number of posts including those of soldier clerk, strongman and soldier tradesman at 52 centres across the country.
The sources said army has ordered an internal enquiry and further action will be taken based on the findings. Tests were likely to be "countermanded" in more centres.
The questions were allegedly leaked to candidates by some people working for coaching classes. The aspirants had to allegedly cough up Rs two lakh each for the question paper.
A top Thane police officer said involvement of army officials cannot be ruled out.
Following a tip-off about the leak, Thane police, with the help of their local counterparts, conducted raids at various places in Nashik, Pune and Nagpur in Maharashtra, and some others in Goa. Some aspirants were found writing the papers at different places in Thane during the raids.
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