An alleged aide of fugitive gangster Dawood Ibrahim was arrested for trying to extort Rs 5 lakh (File)

An alleged aide of fugitive gangster Dawood Ibrahim was arrested for trying to extort Rs 5 lakh from a businessman in Mumbai, police said on Sunday.

Riyaz Bhati, 50, was picked up by Crime Branch's Unit I on Friday from Crawford Market area in south Mumbai on the basis of a First Information Report or FIR registered at Juhu police station in June this year, an official said.

The Goregaon-based complainant had alleged Riyaz Bhati was his business partner who started demanding money by dropping names of underworld operatives after he called off the partnership, the official said.

Unit I senior inspector Vinayak Mer said Riyaz Bhati was arrested under section 384 (extortion) of the Indian Penal Code and had been sent to police custody till October 9.

Riyaz Bhati was held by the police's Anti-Extortion Cell in July this year for allegedly forging a signature to get membership of the Mumbai Cricket Association, an official said.

In August, Riyaz Bhati and his brother were charged by Amboli police station in an extortion case.

Officials said he is also an accused in two firing cases in Khandala and a land grab case in Malad.