According to police, Chandani, who had co-produced "Gali Gali Chor Hai", is involved in betting, and used the ill-gotten money for the film.
The Crime Branch had busted a major cricket betting racket in suburban Kandivali on May 17, and arrested six persons.
The interrogation revealed that it was a part of huge syndicate, headed by Dubai-based Sunil Abhichandani alias Sunil Dubai.
Police believe that Abhichandani could be linked to fugitive gangster Dawood Ibrahim. Chandani, allegedly, was the right hand man of Abhichandani, and he managed the syndicates in India, Sri Lanka and Pakistan.