Delhi Police have arrested the owner of a Mumbai video parlour for allegedly threatening and demanding Rs.500 million from Sanjay Kapur, the estranged husband of actress Karishma Kapoor.

Rajkumar Wazirchand Vazirani, alias Raju, owner of video parlour Royal King Club in Mulund area of north Mumbai was arrested late Tuesday night.

The action followed after a complaint was registered by Kapur Aug 26 alleging that he had received an e-mail from one Sameer Kulkarni demanding a sum of Rs. 500 million. The nine line e-mail also threatened to kill him if he failed to provide the said amount.

"A team of police officials arrested the culprit after four days of investigations in Mumbai," Ajay Kumar, deputy commissioner of police (special cell), told reporters here.

"As the mail originated from a Rediffmail account, the police took the help of Rediff.com and got the confirmation about the e-mail and the concerned cyber café," he added.

Rajkumar is now under Delhi Police custody.

According to police, Raju is a habitual criminal and has been arrested at least three times before. He used to extort money from local shopkeepers but nobody dared complain against him due to his criminal background and nexus with criminals.

Police claimed that on interrogation, Raju admitted that he created and sent the mail in a fake name to Sanjay Kapur and that there was no link between him and Karishma Kapoor.

The hard disk of the computer concerned had already been seized for further investigation, police said.