The accused, 41-year-old Mukesh, was arrested yesterday by two beat constables from near a bus stand in South Extension (Part-I) where he was standing wearing a uniform of Transport department constable, said DCP (South), Ishwar Singh.
When grilled by the suspicious policemen, he spilled the beans and admitted to extorting money from drivers of autorickshaws and commercial vehicles, posing as Transport department constable and threatening them with heavy fines for traffic violations.
Mukesh had worked as a Homeguard for five years and was discharged from service in 2003.
He was involved in five cases of extortion with auto and commercial vehicle drivers in Kashmere Gate, Civil Lines and Usmanpur areas, the official said.