Acting on a tip-off, a trap was laid near Shreeji restaurant at suburban Oshiwara on Sunday and the accused, Zulphikar Behlim, was nabbed when he reached the spot, a crime branch official said.
"Behlim was subsequently handed over to Santacruz police station, which placed him under arrest," the official added.
According to police, on November 28 Behlim and his associates had barged into a construction site of a well-known builder in Santacruz. He demanded Rs 8 lakh of extortion from the site manager and gave death threats in case his demand was not met.
Before this on November 24, the accused had also threatened a manager of Hotel Pakiza in Santacruz and demanded Rs 5 lakh. Since his demand was not fulfilled, he along with his aides ransacked the hotel at about 1.30 AM on November 29.
While Santacruz police were probing these cases, the Anti-Extortion Cell of Crime branch had begun a parallel investigation.
Behlim had been convicted in a 2009 murder case. He spent one year rigorous imprisonment before being released from jail in September 2013.
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