Eight people died in the state during the Bharat Bandh called by Dalit groups who claim that a law meant to protect them from atrocities has been diluted. Three of them died in Gwalior.
The police say Raja Chauhan faces charges like attempted murder.
In the video that went viral on social media, Raja Chauhan is seen firing one round from a pistol in the Thatipura area of the city, where 22-year-old Deepak Jatav, a Dalit, was shot dead. The video also shows men carrying lathis and throwing stones. Some gunshots can also be heard.
"A group of about 50 people, carrying lathis and chanting Jai Shri Ram, barged into the area. Some of them fired gunshots. My son was hit by three bullets," Deepak's father Mohan Jatav told NDTV.
Deepak ran a tea stall to support a family of five.
Raja Chauhan's father told NDTV that his son was in Indore on Monday.
Eight deaths were reported in Madhya Pradesh during Monday's violence, the worst-hit areas being Gwalior, Morena and Bhind. Curfew continues in parts of Gwalior and Chambal.
A total of 236 people have been arrested till now, including 75 from Gwalior. Raja Chauhan has not been arrested yet, said Makrand Deuskar, IG (Law & Order) told reporters.