Satish, 30, nabbed by City Crime Branch from Meltapady near here yesterday, was involved in eight other criminal cases including murder and murder attempt, police sources said.
Police had already arrested five other persons in the case, but Satish had been absconding since the incident.
Satish and another accused Lithesh had a personal grudge against Shetty for rejecting their requests for financial assistance, police said. A case was earlier registered in the Suratkal police station against Satish for threatening Shetty.