Bhagat and Karande were picked up from a hideout at Kandivli by sleuths attached to Unit-10 of the crime branch. A holiday magistrate has remanded them to police custody till January 25.

Police have seized three fake rubber stamps, police belts, uniform, airgun, a fake pistol and choppers from them. Visiting cards of police inspectors with official insignia were also recovered.

Explaining the modus operandi of the two gangsters, investigating officer Vilas Gangwane said they used to target businessmen posing as police officers and flash fake identity cards. The `raids' on businessmen were carried out after finding out the victim's background.

According to Alhad Gaikwad, another member of the squad, the two also threatened businessmen as local gangsters. Theyoften changed their gang affiliations depending on the clout exercised by various gangs in different parts of the city, Gaikwad added.

A case in point is that of a businessman from Thane district. The two men threatened him saying they were members of the Subash Singh Thakur gang and close associates of his trusted lieutenant Kishore Garigapatti.

In the northern suburbs, they posed as member of the Chhota Rajan gang, while in central Mumbai they claimed they belonged to Arun Gawli's outfit.

In another case in September last year, the duo hired a Maruti from Girgaum impersonating as police officers. They tricked the driver by offering him snacks before disappearing with the vehicle.

The two men are named in at least a dozen cases, including those of murder. They were booked under NSA in 1993.

Investigations revealed the two men have committed serious offences under the jurisdiction of Malvani, N M Joshi, Nagpada and Agripada police stations.

The other officers of the squad under the supervision ofAssistant Commissioner of Police Dashrat Awhad were senior inspector Ambadas Pote, Sunil Deshmukh and A Vidate.