Mumbai, Jan 23 IANS): The Mumbai Crime Branch has arrested D.K. Rao, a close associate of underworld don Chhota Rajan, along with six accomplices, for allegedly threatening a hotelier in the city and demanding extortion money.

The case came to light after the victim, a prominent hotelier, lodged a complaint with the police.

According to the complaint, D.K. Rao and his associates conspired to seize control of the hotel and demanded Rs 2.5 crore as protection money. They reportedly issued death threats to coerce the businessman into compliance.

Following the complaint, the Crime Branch registered an FIR under the relevant sections of the Bharatiya Nyaya Sanhita (BNS). The Anti-Extortion Cell of the Mumbai Police quickly swung into action, arresting Rao and the other six accused. All of them are now in police custody, and further investigations are underway.

Police sources said this may mark a resurgence of large-scale extortion activity by the underworld, which had significantly waned in recent times.

D.K. Rao, a notorious figure in Mumbai's underworld, has been implicated in multiple illegal activities over the years, including extortion and organised crime.

This is the first instance in years when such a substantial amount has been demanded as protection money. The police are now investigating whether the gang was acting on their own or under the directives of a larger syndicate.

Rajan, currently in Delhi’s Tihar jail, is one of the dreaded mafia syndicate bosses in Mumbai. He was first arrested in 1979 for assaulting police constables. After he was released from jail, the gangster joined the Bada Rajan gang and then sought refuge under Dawood Ibrahim.

In 1989, Rajan sneaked off to Dubai and Indonesia -- where he spent nearly 27 years as a fugitive on the run. He was deported to India in November 2015.

The underworld gangster is wanted in several criminal cases, including murder, extortion, smuggling, and drug trafficking.