The Bhayander police on Friday night arrested a corporator and his three accomplices for allegedly threatening and extorting Rs 10 lakh from a school principal.
In 2007, Naina Padiya, principal of H. Mishra Gujarati School, purchased six flats and ran a pre-primary school from the flats.
The school was shut down in June 2009 and Padiya sold the flats to a private party.
But on Friday, Padiya claimed Maharashtra Navnirman Sena corporator Ganesh Shetty called her and the buyer to his Bhayander office, where the other three accused were also present.
The police said Shetty evinced interest in buying the flats, but Padiya refused as she had already signed the deal.
“Shetty asked Padiya to pay Rs 10 lakh and threatened to shoot them if his demands were not met,” said Inspector Rajendra Mohite of the Navghar police station.
Padiya then filed a complaint and all four accused were arrested on Friday night from their homes.
Shetty has two previous cases of assault registered against him at the Mira Road police station, the police said.