Wanted underworld don Dawood Ibrahim's brother Iqbal Kaskar was arrested by the Narcotics Control Bureau (NCB) in Mumbai on Wednesday.
According to reports, Kaskar was arrested allegedly peddling banned substances from Jammu and Kashmir to Punjab.
Kaskar was deported from the UAE in 2003 and was arrested by the Thane Police in September, 2017 in connection with an investigation into an extortion case.
He is suspected to have been operating the real estate business of Dawood Ibrahim Mumbai.
According to the builder's complaint, Kaskar had threatened and extorted Rs 3 crore from him over a deal of a 38-acre land in Mumbai's Gorai area.
During investigation, the alleged role of Dawood and Anees Ibrahim also came to light following which both were shown as wanted accused in connection with the offence, the police had said.