A close aide of underworld don Chhota Rajan, who is already behind bars in connection with different cases, was arrested on Thursday for allegedly trying to extort Rs 50 lakh from a businessman, police said on Friday.
D K Rao, lodged in Taloja jail in connection with different cases including the murder of senior journalist J Dey, was arrested on Thursday in the extortion case, said a crime branch official.
"An application was moved in the MCOCA court seeking the custody of Rao. After the court granted permission, he was arrested in the fresh case," the official said.
On November 10, Vijay Babar was arrested for giving death threats to the victim and trying to extort Rs 50 lakh from him at the behest of Rao, who has been booked under Maharashtra Control of Organised Crime Act (MCOCA) in other cases.
Rao has been remanded in police custody for ten days, police said.