The APMC police arrested a 32-year-old man from a bar for allegedly extorting money from traders in the market in Vashi on Thursday.
The accused has been identified as Ashok Hansraj Sonkar, alias Ashok Mirchi.
The accused is a history-sheeter and as many as 12 cases of extortion have been lodged against him by the APMC and other police stations in the past. The police are also investigating his links with a Mumbai-based gang.
The cops were on the lookout for Sonkar for a long time. A team was formed under the guidance of DCP Suresh Mengde.
Senior police inspector Vikas Ramgude said that so far he has been found to be involved in extortion at the APMC market. However, they are checking if he has any links with a gang in Mumbai.