The arrest of Jenunooka Raju, who had sold his kidney through Prajapati, led to the latter's arrest yesterday, a police release said here.
Police also arrested Prajapati's accomplice Dilip Chouhan.
Prajapati was operating the racket, where the kidney sellers were taken to Colombo, Sri Lanka, for the transplantation procedure, since 2012.
He is accused of having arranged 60 kidney transplants at four hospitals in Colombo.
He charged the kidney recipients Rs 28-30 lakh and earned a profit of Rs 5 lakh per transaction, police said.