The gang had demanded Rs. one crore from a businessman who started receiving threatening calls since June 16 last year, according to Manohar Dalvi, senior police inspector attached to CIU. A month later he was given the telephone number of Dawood's brother Noora and asked to settle the matter with the underworld don.

The victim, who is an expert in mining, did not file a police complaint out of fear. On Tuesday evening the accused again telephoned the complainant and told him to come to Maratha Mandir theatre the same evening with the amount. The businessman approached the CIU who laid a trap near the theatre and arrested eight gang members at 11 pm.

Police identified the arrested as Mohammad Salim Mohammad Ismail Sheikh (33), Sajauddin Ahmedmiya Mastan (49),Shaukatali Noor Mohammad Ansari (25), Mohammad Shamim Babuddin Mohammad Quereshi alias Shamim Ansari (32), Hasmukh Roopchand Jariwala (50), Mohammad Shakeel Mohammad Islam Khan (20), Iqbal Mohammad Patel (39) and Aftab Abdul Balbale (22), a nephew of Dawood. Two others Sajid and Iqbal had managed to escape. Two Yamaha motorcycles were seized from the gangsters.

The arrested were produced today before additional chief metropolitan magistrate Usha Iyer who remanded them to police custody till January 14.According to the police, the gang members were involved in several cases of extortion, including Rs 20 lakh collected from a Jain sanyasin in the western suburb. Police seized two motorcycles from the accused.