A police official not willing to be quoted said Kaskar was wanted for an extortion case recently lodged against him.
The officer told News Nation that Thane crime branch had received a complaint from a renowned businessman regarding an extortion threat by Dawood Ibrahim’s brother Iqbal Kaskar and his gang.
According to the officer, the businessman earlier had given four flats to Kaskar as extortion. He lodged a complaint with the Thane crime branch after Kaskar demanded a few more flats as extortion.
He added that encounter specialist Pradeep Sharma, who now heads the anti-extortion cell was given the case.
"Kaskar was called for questioning to Thane crime branch and later arrested," said the police official.
According to police sources, Mumbai Police earlier in 2015 had arrested Kaskar in connection with an extortion case registered by one real estate agent with JJ Marg police station. The realty agent had accused Kaskar and his gang member of assaulting him.