Arrested assistant commissioner of police Ashok Dhavle used to threaten his own aide Amar Singh of encounter to ensure that he got a cut in the drug deals that were made in the city.
According to crime branch sources, Dhavle arrested Singh in 1998 and since then the latter became his informer. Dhavle threatened Singh and asked him to share his drug deal spoils with him. He had warned Singh that in case he failed to do so, then Dhavle would bump him off in an encounter.
Sources said the crime branch is looking into all the transactions made through his accounts since 2003.
"We have seized six of his bank accounts," said additional commissioner of police (crime) Deven Bharti.
Dhavle was arrested on Tuesday while allegedly smuggling 1.54kg of brown sugar in his official vehicle.
He is in police custody until March 8.
The police are investigating if there was an inter-state gang involved in the drug racket and if Dhavle, posted with the protection of civil rights department, and Singh were a part of the gang.
The contraband was smuggled from Jammu and Kashmir and was meant for circulation in the local market.
The duo has been booked under relevant sections of the Narcotic Drugs and Psychotropic Substances Act.