Agarwal, accused by scam kingpin Sudipta Sen of extorting money from him, was arrested Saturday night by the Central Bureau of Investigation (CBI) after several hours of questioning.
"The court granted three days of custody rejecting his bail plea," said a CBI officer.
Agarwal is the second person to be arrested by the CBI in a week after it took over the investigation of the scam in West Bengal following a Supreme Court order in May.
The agency had Wednesday arrested East Bengal Football Club official Debabrata Sarkar.
Sen in his April 2013 letter to the CBI had alleged that Sarkar and his accomplices, including Agarwal, extorted over Rs.40 crore from him to cover up a probe then being conducted by market regulator SEBI.
The CBI is likely to interrogate Sen, Sarkar and Agarwal.