Masrani was arrested on charges of breaching Prohibition Act and was later released on bail, police said.
Masrani allegedly threatened former BJP mayor and sitting corporator Uday Kangad and asked him to come at Kishan Para chawk to settle an old dispute reportedly involving Congress city unit president Jasvantsinh Bhatti, police said.
Kangad had allegedly beaten up Bhatti on December last year when the latter removed Chief Minister Narendra Modi's posters near Race Course ground ahead of 'Sadbhavna fast'.
The corporator reached the spot in his official car and tried to run away after seeing police over there. However, police chased him and caught him near Kuvadava road.
Meanwhile, Masrani claimed that he was trapped in a conspiracy hatched by Kangad and said he will resign from RMC if he was "confirmed to be drunk".
