Hauz Khas police station in south Delhi was heavily barricaded and a large contingent of police deployed there.
Singh has also been charged with IPC sections 467 (forgery), 468 (forgery with purpose of cheating) and 120 (B) (criminal conspiracy), the sources said.
The arrest comes amid an escalating turf war between the AAP government and Delhi lieutenant Governor Najeeb Jung.
Delhi Police Commissioner B S Bassi refused to respond to queries on the arrest.
"I was in the meeting and I will seek details of his arrest before commenting," Bassi said.
Hitting out, AAP leader Sanjay Singh accused the Centre of using "pressure tactics" against the Delhi government.
"The concerned university has filed its reply in the court. It also recorded the statement that the degrees are genuine. Then why was he arrestedIJ
"The lt Governor, Delhi Police Commissioner and the Modi government are trying to scare us with such tactics. But we are not going to be scared. Our fight against corruption will continue," Singh said.