Mumbai Police arrested Kundra, a 'key conspirator' in the case on Monday. He was taken for medical examination at JJ Hospital on Tuesday and then to the Mumbai Police commissioner's office.
The police also said they have "sufficient evidence" against him, though they added that further investigations are in progress, NDTV reports.
The racket of making and publishing pornographic content with Kundra's involvement was first busted in February this year when a woman approached the Mumbai Police against the businessman and alleged involvement in luring young women and men on the pretext of offering roles into web series and short films, Hindustan Times reports. They allegedly forced them to act in a pornographic film instead.
The arrested include Rowa Khan alias Yasmeen who claimed to be a producer-director; photographer Monu Sharma, and creative director Pratibha Nalawade along with and two actors, Arish Shaikh and Bhanu Thakur, according to the report.
Kundra had earlier sought anticipatory bail in the case after denying any wrongdoing.
Shilpa Shetty married Kundra in 2009 and the couple shares two children. Kundra, the owner of an app called JL Stream, was part owner of Indian Premier League cricket team Rajasthan Royals.
In 2013, he was questioned by the Delhi Police in connection with the betting and spot-fixing scandal that engulfed Indian cricket.