Tariq Abdul Parveen, who was in a jail in Uttar Pradesh in connection with a 1999 criminal case, was brought here on a production warrant and placed under arrest in the extortion demand case, in which five persons are already behind bars, said Deputy Commissioner of Police (Crime) Dhananjay Kulkarni.
The 48-year-old will be produced before a court tomorrow, he said.
Parveen had been arrested from Nagpada here by Uttar Pradesh Anti-Terrorism Squad on January 19 in connection with a criminal case registered with it.
Police did not reveal the name of the builder, who is based in suburban Juhu, citing security reasons.
While probing the case, Mumbai Crime Branch nabbed Shakeel's close associate Ramnarayan Singh alias Bachi Singh along with four other suspects.
Police moved to seek custody of Parveen after his name surfaced in the extortion case.