Mumbai, Feb 21 (IANS): The Enforcement Directorate (ED) on Monday interrogated Dawood Ibrahim's nephew Alishah Parkar in the latest development in the money-laundering case involving underworld don and an unknown Mumbai-based politician.

The ED had on Friday arrested Dawood's brother Iqbal Kaskar in the case - the first arrest in the politician-underworld nexus case. Kaskar is in the ED's custody till February 24.

Earlier, Salim Qureshi, an aide of Chota Shakeel, was interrogated by the team of the centre probe agency.

The sources said that it was learnt that Qureshi went to Pakistan several times on the basis of a forged passport. He also allegedly works at behest of Dawood and Shakeel.

The ED has collected information regarding his bank accounts, properties and other income sources.

Sources claimed that the accused used to collect extortion money, and also earned through "settlements" - solving disputes they created themselves, and through drugs. Later this money was allegedly being used for terror activities across India.

The Thane police had arrested Kaskar in 2017 in connection with an extortion case.

An FIR under section 384 (extortion), and other relevant sections of the IPC was lodged by Thane police against Kaskar, Anees Ibrahim, and others. The ED took all the documents from Thane police pertaining to the case and initiated a probe of money laundering.

The National Investigation Agency, too, had lodged a case of terror activities on the basis of the FIR of the Thane police and other relevant documents. The ED lodged an ECIR of money laundering on the basis of the case it had lodged.