Rao had been threatening the complainant since last one year while he was extorting money from builders in the city.
Mumbai: Gangster Chhota Rajan's trusted aide DK Rao was arrested for allegedly demanding Rs 50 lakh in extortion from a Slum Rehabilitation Authority (SRA) project consultant in Dharavi area of Central Mumbai, the police said on Thursday.
Rao had been threatening the complainant since last one year while he was extorting money from builders in the city, a senior official said.
Meanwhile, DCP, Detection, Dilip Sawant said Rao was arrested yesterday by Crime Branch sleuths who had put him under surveillance over a period of time.
"We had received a complaint from a person related to building construction business that Rao was demanding ransom from him and threatened him of dire consequences," he said.
An FIR was registered against Rao at Dharavi police station under sections 387 (putting person in fear of death or of grievous hurt), 504 (intentional insult with intent to provoke breach of the peace), and 506 (punishment for criminal intimidation) and other relevant sections of the IPC.
Based on the complaint, a through probe was conducted into the matter before Rao's arrest.
He was produced before court on Thursday, which remanded him in police custody till October 18.
Rao has over 2O cases registered against him in Mumbai region. He had been acquitted in an extortion case only last year.