The man was produced before a court which sent him to one-day police custody.
A 40-year-old fair price shop owner was arrested for alleged misappropriation of foodgrains in Delhi's Dwarka, police said on Thursday.
The matter came to light after food supply officials of Circle 30 in Janakupuri filed a complaint stating that the shortage of wheat and rice was found to be misappropriated by the shop owner, identified as Parshant Rath, they said.
A team was constituted which recovered 70 quintals out of 107.86 quintals of misappropriated wheat and the accused was arrested, police said.
Mr Rath was produced before a court which sent him to one-day police custody, they said.