City police on Monday arrested a 20-year-old man who was allegedly driving the car used in the abduction of slain diamond trader Rajeshwar Udani.
This takes the number of arrests in the case to three, a senior police official said.
Pranit Joma Bhoi, the accused, was allegedly driving the car at the time of the crime.
Sachin Pawar, former personal assistant of a Maharashtra minister, and Dinesh Pawar, a suspended police constable who was earlier arrested in a rape case, were arrested in the case Saturday.
Both have been remanded in police custody till December 14 by a local court.
"We have arrested a third accused. His role in the crime is being ascertained," said Akhilesh Singh, Deputy Commissioner of Police (Zone 8).
Police have formed several teams to work on the case and some persons were being questioned, the DCP added.
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Decomposed body of Udani (57), resident of suburban Ghatkopar, was found in Panvel in neighbouring Raigad district Friday.
He had gone missing on November 28. Sachin Pawar had accompanied his family members when they went to the police station to lodge a complaint about Udani's disappearance the next day, a police official said.
Autopsy of Udani's body revealed that he had several fractures, and had been strangulated.
Police suspect that Udani was killed over a monetary dispute. It is also suspected that he was trying to get close to Sachin Pawar's girlfriend, which Pawar did not like.
Actor and model Devoleena Bhattacharjee, known for her role as Gopi Bahu in the popular Hindi serial "Saath Nibhana Sathiya", was questioned in the case Saturday. She was allowed to go later.
All three accused have been arrested under the Indian Penal Code sections 302 (murder), 365 (kidnapping) and 120B (conspiracy).
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