The head of an Indian auction website has been arrested over the sale of video clips of two Delhi school students engaged in a sexual act.
The boy allegedly circulated the clip via mobile phones
Police arrested Avnish Bajaj, chief executive officer of Baazee.com, after the sale of video CDs showing the act.
A warrant has also been issued against the boy although as he is a minor the circumstances have not been detailed.
In an initial statement, the company said it was unaware of the content of the video clip.
Both the boy, 17, and girl, 16, have been expelled from the school - a leading Delhi institution.
We have found that the sale was continuing on the online site and they did not act diligently
The boy allegedly recorded the clip and circulated it via mobile phones across the country and abroad.
Police say the two minute, 37 second, clip was copied on to video CDs and sold.
Speaking to the BBC, the deputy commissioner of the Economic Offences Wing of Delhi police, Prabhakar, alleged Bazee.com did not take enough steps to stop the sale of the clip.
"Following investigations, we have found that the sale was continuing on the online site and they did not act diligently. In this connection, we have arrested the CEO of the site, Avnish Bajaj," he said.
Mr Prabhakar said Mr Bajaj was arrested under Section 67 of the Information Technology Act.
The act prohibits the use of the internet to distribute obscene or pornographic material.
Authorities have also arrested a student at India's premier technological institute, the Indian Institute of Technology, on charges of selling the clip on the auction site for 125 rupees ($2.85).
A senior police official said the girl involved had left Delhi but could be questioned if necessary.