The accused, Hiten Mehta (35), was apprehended from suburban Vile Parle after a trap was laid by cops disguised as auto-rickshaw drivers and hawkers, a police officer said.
According to Senior Inspector Vinayak Vats of the Anti-Extortion Cell (ANC) of the crime branch, the victim who is a distributor of cosmetics, had received extortion calls from Pakistan for the past few days.
Later, the victim began receiving calls from Dubai from a lady who introduced herself as "Sana" and threatened him with dire consequences if he did not heed Afzal's orders, the police said.
After the victim agreed to pay Rs 3 lakh, the accused Hiten Mehta from Mumbai began keeping in touch with him on behalf of "Afzal" and "Sana".
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Subsequently, he returned to Mumbai, where he as well as his accomplices "Afzal" and "Sana" decided to extort money from the victim, since the trio was looking for easy money.
The police is probing how the three accused managed to get the victim's number and know his background.