Police sources said the arrest of Khan - believed to be a Norwegian - and her possible deportation was part of a larger crackdown against foreigners working in India's film and advertising industry without valid papers. They, however, did not say if any other film personalities were under probe.
Indian actors and models have for long been complaining that non-resident Indians come to India on tourist visas and pick up plum projects.
Police officials did not say if they were acting on specific complaints against Khan. She was summoned before the Foreigners Regional Registration Office (FRRO) as her papers were allegedly not in order. She has been charged with working in the country on an invalid work permit.
It is not clear if the document was forged or it had expired. She has been working in India for the past two years.
She was apparently arrested and taken by the authorities to the airport here, and kept at the immigration cell. Sources say she has been given an Air-India ticket for deportation to Norway late Monday.
Khan told television channels that she was driven to the airport without any notice. "They did not even let me pick up my clothes... I don't know why they are taking me away like this," Khan was quoted as saying by television channels.
"I had gone to the FRRO office to sign some papers... There is nothing wrong with my visa... it says I work here... They are not allowing me to even call a lawyer," she told television channels.
The official who was with her in the car said she was being deported because her papers were not in order.
Khan has been caught up in controversies before. The bold starlet last made headlines when photographs purporting to be those of her modelling topless for a Norwegian magazine were revealed.