The Delhi Police have arrested a 22-year-old man, who planted a low intensity bomb outside his neighbour's house in order to extort money from him.
After the blast he made calls to the victim, an east-Delhi based businessman, claiming to be a member of a terrorist organisation and demanded Rs 2 crore from him.
He threatened to blow up his house if he failed to give him the money.
Police said the accused, identified as Parvesh Kumar is working with a construction company in Delhi as a supervisor. The blast took place on the night of August 12.
"He prepared the incendiary device by using inflammable materials used in crackers. He learnt the making of this incendiary device from the internet," Ashok Chand, DCP (crime) said.
"Kumar stuck a glass bottle stuffed with inflammable material on the fuel tank of the TATA 407 owned by the businessman's brother parked outside their house. His intention was to cause major damage and he expected that after the blast the fuel tank would catch fire. He lit the straw and fled," Chand added.
However, since it was a low intensity blast the fuel tank did not catch fire.
Police said that on August 30, the businessman, who deals in auto parts, lodged a complaint with the crime branch about the blast and extortion.
During interrogation Kumar disclosed that his relations with his neighbour had soured he became rich while his economic condition remained the same. "He had taken loan from the victim and when he demanded his money back, this led to verbal arguments," Chand added.