The scam came to light after the civic body approached the banks concerned and tried to encash guarantees to the tune of Rs 6.5 crore that had been submitted by the then Zone 2 parking contractor, whose contract ended in January.
Police said that accused Anil Kumar Sharma is the business partner of Sanjay Sharma, director of the M/s Pashatya Entertainment Pvt Ltd, who was arrested earlier this month. Both Anil Kumar Sharma, and his accountant Ajay Kumar, are also in police custody.