According to the S Paithankar, Senior Inspector, Goregoan police station said Shaqique Shaikh was threatened by Bhaskar Dhere.
Dhere extorted money from Shaikh after threatening to arrest him on the grounds that the gutkha he sold was not genuine.
Shaikh said that Dhere along with three other accomplices came to his shop on Jul 4. He identified others as Bablu, Salim and Rafiq Shaikh Ali.
Shaikh claimed that the police inspector agreed to settle the matter for an amount of 1.40 lakh.
"Scared, Shaikh allegedly paid the amount to Dhere," said Police Inspector S Patil
After Shaikh decided to check out the guthka packets himself, he found that the packets were genuine after which he realised that he was duped.
Paithankar said Dhere was absconding and was arrested on Jul 10, Goregaon.
According to reports, Dhere in a similar manner approached a gutkha vendor and demanded Rs 30, 000. The vendor, who was aware of a similar case filed by Shaikh informed him abd Shaikh reported the police.
"After his arrest, we received a few more complaints that are yet to be verified," said Patil after Dhere was caught.