Narahari Satam (32), who resides in Bhoiwada area here, was nabbed yesterday while taking Rs 10 lakh cash as the first instalment from the victim who works for a well-known builder in the city.
According to Anti Extortion Cell (AEC) of the Crime Branch, the builder had been receiving a number of extortion calls from Guru Satam who is holed up abroad.
Guru later began calling up the builder's site supervisor. "The supervisor was told to receive the phone calls from a local number, which will be made by his local associate and pay him the sum to him."
Subsequently, Guru's relative Narahari started making threatening calls using a fake name to the supervisor who approached Dadar police station and lodged a complaint.
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A parallel probe was being conducted by the Anti Extortion Cell.
"As the accused had demanded Rs 50 lakh from the complainant, we asked the victim to express readiness to pay Rs 10 lakh as the first instalment," Vinayak Vast of the AEC said.