Onkhomang Haokip, along with a police team, picked up Lalboi Mate, Thangal Baite and Maopu Baite from Paona Bazar area here on December 11 and beat them up severely at an isolated place on the outskirts of the city, they said.
Haokip and other police personnel allegedly extorted Rs 90,000 and a mobile handset from the three persons, who hail from interior Chandel district and had come to Imphal to purchase goods for Christmas, and released them at another isolated place near Imphal on December 12.
Haokip is now in police custody and his interrogation is on.
Some social organisations including Thadou Students Association strongly condemned the incident and demanded action against Haokip and his party.
A senior police official, on condition of anonymity, said police has taken the incident 'very seriously' and will punish those involved.