Anil Waghmare, the alleged mastermind, was arrested from the city in connection with the murder of Sawant, Vinay Rathod, Deputy Commissioner of Police (Zone-XII), said.
The 43-year-old, who runs a civil services examination guidance centre in suburban Kandivli, is the fourth accused to be arrested in the case in which a minor has also been detained.
Waghmare had a personal enmity with Sawant on various issues and allegedly planned his murder, he added.
Waghmare had requested for allotment of a classroom of a local BMC school to run his classes, but his plea was turned down allegedly due to Sawant's influence, the official said.
Angered over Sawant's behaviour towards him, Waghmare hatched a conspiracy with other accused persons to kill the politician-cum-businessman, he said.
Waghmare was the one who kept on eye on Sawant's movements on the fateful day and also harboured the accused who later took part in the crime, the official said.
The two-term corporator from Samata Nagar in Kandivli, was attacked with cleavers at around 11 pm on January 7 while he was returning home after meeting a friend.
Sawant, who had entered the cable television business a few years ago, was rushed to a nearby hospital, where he was declared dead on arrival, police have said.
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