Khanchandani was arrested from his residence in Mumbai by the Crime Intelligence Unit (CIU) of the police, the official said.
He will be produced before a court for further remand, he added.
The police began a probe into the alleged scam after ratings agency Broadcast Audience Research Council (BARC) filed a complaint through Hansa Research Agency about rigging of TRP by some channels.
Khanchandani’s arrest comes less than a week after the Supreme Court dismissed a plea of the ARG Outlier Media Private Limited, the owner of the Republic Media Network, seeking protection of its employees.
The top court had said that the petition was ‘ambitious’ in nature, and therefore the company should withdraw it.
TRP, measured by recording viewership data at sample households, is crucial for attracting advertisers.
The BARC engaged Hansa to install and maintain barometers which record TV viewership data at sample households.
It was alleged earlier that some families are being paid to tune into certain channels to gain more TRP.
In a charge sheet filed recently, the police alleged that an official of Hansa paid money to sample households to tune into Box Cinema, Fakt Marathi, Maha Movie and Republic TV.
The Republic TV had denied all accusations.
Inclusive of Republic TV CEO arrested Police have arrested 13 people in connection with the case so far.