The deceased boy Aditya Rankha's cousin - Himanshu Ranka (28) and his accomplice Brijesh Sangvi, who happens to be friend of Aditya's elder brother - were yesterday arrested in connection with the crime.
According to police, Aditya's father Jitendra got a phone call from a public booth on Monday wherein the caller, who identified himself as Rakesh, demanded Rs 30 lakhs for releasing his son.
The boy's father later went to the VP road police station in Central Mumbai along with Himanshu, unaware that the latter was involved in the kidnapping, and filed a case on Monday.
"We started questioning Himanshu on the basis of suspicion, and he broke down and said that he conspired to kidnap the boy," a police official said.
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Police later arrested Brijesh, who had actually kidnapped the boy.
"They were also involved in betting on the ongoing IPL matches in which they lost money. It was then that they decided to kidnap Aditya and seek ransom," the official said.
They decided to kill Aditya fearing that if he they release him, he may identify them.
"They took the boy to the nearby Raigad district and killed him and burnt his body," the official added.
Both of them will be produced in the court later today.