Chimote, a resident of Subhash Nagar, allegedly helped some property dealers to come out clear in a fraud case and had reportedly demanded a huge sum for this.
He was arrested yesterday and produced before a local court which remanded him in two-day police custody.
Shankar Gade, a Kukde layout resident here, had lodged a complaint on January 27 this year alleging that Anil Jain, Arvind Kumar Jain, Deepak Shendre and an unidentified woman had cheated him by forging papers of a property in Chichbhavan and taking Rs 4.2 lakh as the token amount.
During the probe, it was learnt that Chimote had helped the accused come clear of charges, police said.
Dhantoli police are further investigating the case.