Krishan Kumar Dahiya, 40, who hails from Palam Colony in south west Delhi, has been arrested following a complaint by Kanwal Kumar that Dahiya had been threatening him to pay Rs 50 lakhs for continuing the construction of a mall at District Centre in Sector-12 Dwarka here.
Dahiya, who himself was in the real estate business, had suffered losses and took up the crime, police said.
The FIR alleged Dahiya and his associates intruded into the office of the complainant on June 12 and demanded money by saying that the plot, on which the mall was to be constructed, belonged to him.
Police, which had been conducting raids to arrest Dahiya, got the tip-off and arrested him yesterday from Dwarka.
The accused confessed to the offence, police said, adding that the efforts were on to arrest his associates.