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Security was beefed up outside Dhoni's family home in Ranchi after a man claiming to be an associate of Dawood Ibrahim demanded 5 million rupees ($102,000) from the cricket star in a letter on Monday.
A second letter sent two days later threatened to blow up the house if police were asked for help. Police sent 45 commandos to keep watch.
On Tuesday, Dhoni arrived in his hometown Ranchi but has since left for Mumbai.
“Three people have been arrested in connection with the extortion and threat letters written to Indian cricket captain Mahendra Singh Dhoni,” a state police official said.
“We have interrogated more than seven people in connection with two letters.”
Dhoni had already received extra security cover in 2007, police said.
But he was unhappy with the arrangements and applied for government permission for his security team to carry more sophisticated weapons.
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