Ravi Waghela, who was related to the victim, was held by the unit 9 of the Crime Branch and later arrested by local police after a detailed interrogation, a police officer said.
A decomposed body of the boy was found in a creek at Versova on November 26.
A case of kidnapping had been lodged with Juhu Police on November 22 after the boy went missing.
Waghela told police that he abducted the boy from his house on November 22, and took him to Versova.
Crime Branch sleuths, who were conducting a parallel probe, found that the boy had been spotted with Waghela on the day he went missing, and picked up Waghela for questioning today.
"On specific information and technical analysis the Crime Branch apprehended the accused person and handed him over to the Juhu Police," said Nisar Tamboli, Deputy Commissioner of Police.
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