Police said that businessman Ali Siddhiqui, 59, a resident of Andheri, owns five acres of land in Vasai's Waliv area.
"It was encroached by a group of people in June this year and when Siddhiqui asked the group to vacate it, the group in turn demanded extortion money," said Tilak Raj Roshan, Additional Superintendent of Police, Palghar.
Siddhiqui alleged that the group demanded Rs 5 crores for Dawood Ibrahim and Rs 1 crore for themselves, Roshan said.
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