The incident happened on Saturday, an official said.
According to the complainant, he was beaten up in Khambalpada and Saralgaon areas several times by the accused who demanded that he return Rs 2 lakh he had taken from Kate, the official said.
"A cousin who was called there by Shelar was also beaten up. The complainant has said that Kate pulled out a revolver and fired it close to his face, injuring his ear. We are probing the chain of events," he said.
Shelar previously used to work for Kate, the official said.
A case for attempt to murder and kidnapping has been registered with Dombivali police station on Sunday, the official said, adding that Iyer has been arrested while a hunt for Kate and Sanjay was on.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)