Iqbal Kaskar's financier Pankaj Gangar arrested

The Thane police on Thursday arrested a fourth accused, Pankaj Gangar, who allegedly provided finances for the extortion racket run by fugitive gangster Dawood Ibrahim's brother and his two associates.

Gangar, who ran a matka betting operation in Borivli, would also send money to gangster Chhota Shakeel every month through hawala channels.

Gangar has several prior cases against him and has been previously booked under the stringent Maharashtra Control of Organised Crime Act (MCOCA).

Police sources alleged that Gangar is a known financier for the underworld, and was also financing Arun Gawali gang members.

Gangar's arrest could blow the lid of the extortion racket's hawala links, police said. He allegedly provided logistics and finances for the extortion racket on the instructions of Shakeel and Iqbal Kaskar. Gangar sends Rs 12 lakh per month to Shakeel through hawala channels, police sources claimed.

"Gangar would arrange accommodation for shooters from Bihar and would provide arms and ammunition. He also had arms in his possession illegally, which we will seize. He was continuously in touch with Shakeel," said an officer.

Police officers claimed that the gang had invested in property outside the state with the extorted money and they are now in the process of tracking the money trail.

"It has been also been revealed during interrogation that the two of Kaskar's associates arrested by us spent large amounts of cash at a dance bar in Mulund," the officer said.