An FIR was registered last night at Byculla police station after a complaint by Salim Shaikh, an estate agent that Kaskar and his men had demanded Rs three lakh after thrashing him last Friday, police said.
The alleged incident occurred in a room at Damarwala building at Pakmodia Street in South Mumbai's Bhendi Bazar area, police added.
The case was subsequently transferred to J J Marg police station as the place where the alleged extortion took place falls in its jurisdiction.
The 48-year-old victim, who is a resident of Byculla, first approached the local police station where the FIR was registered and then the matter was transferred to J J Marg police.
Kaskar had been deported to India from the United Arab Emirates in 2003. Dawood's fifth sibling was wanted in a murder case and his alleged role in the controversial Sara Sahara case where a building came up illegally on government land but a court acquitted him in both the cases in 2007.
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