* A caller has threatened to kill S B Mhatre, a high-profile executive with a multinational, if he does not pay up Rs 30,000 in protection money. Mhatre these days keeps a low profile. After travelling in a Mercedes Benz for two years, he now uses a battered taxi to travel to his office.

With the economy on a slow-burn, the cash-starved Mumbai mafia is now tapping a new source of money small andmedium-sized businesses and professionals in the higher earnings bracket. As a consequence, traders have put on hold all plans of expansions, renovations and diversifications to avoid attention.

Clearly, the underworld is widening its range of targets. The figures available with anti-extortion cells show that the list of people who have received threats include three jewellers, four readymade garments dealers, three hoteliers and at least one doctor.

According to police records, out of 85 victims of gangland killings this year, 34 were not gangsters. Of these, nine deaths were direct fallouts of extortion. Senior police officers admit that there has been a sharp spurt in extortion cases. So far this year, 550 extortion complaints have been registered and over 350 persons have been arrested.

The officers also admit that the reported cases are only the tip of the iceberg. ``The reported cases are hardly one per cent of actual number of extortion demands in the city,'' says an additional commissioner ofpolice.

``We have a choice. Either we get police protection by paying Rs 1,800 per day for two policemen or pay the gangsters. Either way, we lose,'' says RP Abrol of Bombay Small Scale Industries Association. ``Any 18-year-old guy with a gun is now `underworld'. If you do not pay him, your life is in danger. It has happened with many fellow hoteliers...it can happen to anybody,'' says S M Shetty, a Chembur-based hotelier.

The fear is so deep-rooted that businesses have stopped seeking big loans for fear of being ticked off by gangsters. The spokesman of a leading co-operative bank in the city says: ``Banks are now flush with funds as small traders and businessmen have stopped taking loans. Instead they are approaching us for keeping their funds in fixed deposits. Nobody is investing...the threat by underworld has now reached alarming proportions.''

According to All India Business Council (AIBC), a city-based traders' body, the mafia and recession have made businessmen to look for other cities for newventures, accommodation and diversifications. ``Earlier, only big builders and wealthy people were targeted by the underworld. Now even we are on their list,'' says S N Shah, a Tarapur-based exporter.

The city police have already sent proposals to Union Home Ministry to impose restrictions on the easy availability of mobile phones and sim cards. ``Ever since we managed to deactivate several mobile phone numbers that were being used by gangsters, there has been a marked decline in extortion threats,'' claims a senior police officer.

Traders, however, are making their own arrangements. The Federation of Associations of Maharashtra (FAM) has decided to raise an armed private army like Bihar's Ranvir Sena to protect its over 3.6 lakh members. ``This 1,000-strong private army would be raised by our members by contributing between Re 1 lakh to Rs 25 each...the idea is to protect the life and property of our members,'' says a FAM member.

Jewellers and builders have already taken steps to increase vigilance intheir offices. Lok Builders, for instance, has installed video cameras and gun detectors besides employing armed guards to protect its top brass. Some corporate executives and prominent businessmen too have installed video cameras at home. Even the telephone numbers are being changed periodically to keep extortionists at bay. As a cloth merchant from Mohatta Market says: ``Police protection cannot be permanent while the gangsters will not pardon a smart trader. Look what happened to Bharat Shah. He was given protection, but was killed as soon as it was withdrawn.''

An industrialist believes Mumbai may have to pay a huge price for this atmosphere of insecurity. ``The law and order situation has gone from bad to worse. The very fact that the common man is being targeted goes to show that the gangsters no longer fear police. This city has no future,'' he further stated.