DK Rao, a close aide of jailed gangster Chhota Rajan, and his two associates were arrested Friday by Mumbai Crime Branch in an extortion and threat case, police said.
He was arrested outside the sessions court complex in south Mumbai Friday evening, police added.
"He had come for a court hearing. He was taken into custody along with his associates Anil Sing and Mimit Ghuta. The complainant in the case had given Rs 1.5 crore to a builder, who did not return the money. The builder then got Rao to threaten the complainant. Rao will be produced in court on Saturday," a police official said.
In January, Rao and his six associates were arrested by the Crime Branch for allegedly trying to extort Rs 2.5 crore from a hotelier in the western part of the city.