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The accused, Lijesh (30), was taken into custody on Saturday by an investigation team constituted to probe the case, police said.
The stolen cash and ornaments were recovered from under a cot at the house of Vijesh, a welder.
Police said that the breakthrough in the investigation came through CCTV footage and fingerprint evidence.
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Crucial evidence included a chisel found inside the house and fingerprints, police said.
The theft occurred while Ashraf, a rice trader, and his family were attending a wedding in Madurai on November 19.
They discovered the robbery upon returning home on November 24.