"PSI Kirit Patel, attached to Gorva police station in the city, was held for allegedly driving Tajendrasinh Rathod to suicide in February," police commissioner Satish Sharma said.
"PSI Patel and 11 others had been booked in connection with this case," he said.
The deceased Rathod had reportedly named Patel in his suicide note.
Rathod, who owned a fabrication unit in Karodiya, hang himself to death on February 12 at his residence in Jagannathpuri Society in Gorwa.
According to Rathod's kin, the deceased had taken loan from some persons and his employee named Sajid and others, besides Patel tried to trap him over this loan.
"During Navratri, Rathod was abducted and taken to a scrap godown where the accused made him sign around 22 cheques. Patel also threatened him along with other accused. Later in December, he was also taken to the office of one Rafiq Rathod on the Karodiya Road where he was asked to pay an instalment of Rs 50,000," Vikramsinh Rathod said.
Meanwhile, Sharma claimed that police have arrested two youth from Valsad town in south Gujarat who are involved cases of four gold chains snatching from the four women in the city on 16 th April.