The accused was identified as Ali Hassan, a resident of Ahmedabad, police said, adding, he along with other members of the gang, also threatened the victim that they would kill his parents, who live in Bihar's Sheohar district.
On December 22 last year, the victim had received first such call in which the caller had claimed that they had "chopped off" his mother's hands, police said.
"Though the information was exaggerated, it wasn't (completely) untrue. Two accomplices of Ali actually went to the complainant's parents house in Sheohar and attacked his mother with a knife," a police official said.
An investigation was initiated and the extortion call was tracked to be from Bapu Nagar in Gujarat.
A team was sent there and Ali was arrested. The police are now looking for Ali's two accomplices, the official also said.