Inderpal Singh Arora (35), a resident of Sion Koliwada, was arrested last night following a complaint of Kashinath Adak (44), who accused him of trying to extort Rs 8 lakh from him to declare both his huts as 'legal', police said.
The slums of Sion-Koliwada are set to go in for a rehabilitation under the Slum Rehabilitation Authority (SRA) scheme, where every family, that has a hut in its name will be provided with a house, they said.
The victim tried to plead with the accused saying he was a very poor man and was thus unable to pay such a huge amount, Tikekar said, adding but when he was persistently threatened and later, approached the police.
Subsequently, the police registered a case against the accused under IPC Section 384 (punishment for extortion), Section 385 (putting a person in fear of injury in order to commit extortion) and 34 (act done by several persons in furtherance of common intention).