Police conducted raids at her Yojna Vihar residence, but failed to collect any incriminating evidence.
"We have arrested Uma Khurana under the Immoral Trafficking Prevention Act this morning and she will be produced before a city court shortly. We are seeking her remand for further interrogations into the alleged porn scam," deputy commissioner of police (central Delhi) Alok Kumar told IANS.
"We have conducted searches at her home, but except a cell phone we could not find any strong evidence related to the alleged racket," Kumar said.
He added that they are presently examining the videotapes of the sting operation carried out by Live India (Janmat), a private Hindi news channel.
The state education ministry Friday also called a meeting to discuss the alleged prostitution racket involving schoolgirls.
"We will take strict action against all those found guilty in this and I am personally overseeing the matter. A committee has already been appointed to probe the matter," Delhi Education Minister A.S. Lovely said.
The incident came into light after Live India showed Khurana allegedly forcing girl students into prostitution and to act in pornographic films.
Following the telecast of the sting operation, hundreds of people gathered outside the school and smashed windowpanes of the school building demanding immediate arrest of the teacher.
They torched and damaged several vehicles. Nine people, including a municipal councillor, were also injured in the violence.
According to sources, the teacher was providing private tuition to girl students at her Yojna Vihar home, and would allegedly give the girls, especially those aged between 15-18, drinks laced with sedatives.
"When the girls fell unconscious, she would allegedly film them nude along with her accomplices. Khurana was also reportedly urging them to get into prostitution."
"After making the porn films Khurana would allegedly blackmail and threaten the teenagers with dire consequences if they told anyone. It appears to be a big racket and some prominent people could be a party to this," the source told IANS.
The racket was exposed after one of the girl students approached the television news channel.