Salem said that he did so at the behest of Anees Ibrahim, another close associate of Dawood Ibrahim.
In an earlier confession, Salem had admitted to his role in the murder of Dewani and said he had threatened the victim at the behest of Anees Ibrahim.
He stated that Anees had asked him to call Dewani and threaten him, which he did.
Salem had also said that a man called Upendranath Singh alias Guddu had called him from Banaras offering his services as hired killer. Salem arranged to provide four pistols to Upendranath and gave him Dewani's address.
As to the actual killing, Salem said that the killers went to Dewani's house in June 2001 to demand ransom, but Dewani abused them. Angered, his men opened fire and killed Dewani.
In the same reply he also says that he had good relations with Bollywood producers Bobby Anand, Harish and Jhamu Sugand.
This was revealed in his alleged confession which was made available to prosecution and defence lawyers in a special court on Wednesday. However, Salem's lawyer Ashok Sarogi rubbished the confessional statement and said it had already been retracted.