"Buta Singh's son Sarobjit Singh alias Sweety has been arrested along with three other accomplices for allegedly demanding bribe from a Nashik-based contractor Ramrao Patil. Sweety was held after hours of questioning," the agency's Joint Director Rishiraj Singh said.
"We are also probing the hawala angle," he said.
Sweety, while being taken to a city hospital for a medical check-up last night told reporters, "I'm innocent and I've been framed up in this case. All the allegations are false."
He will be produced before a special CBI court later in the day.
Patil is facing a case under the SC/ST Act and it was being probed by the commission headed by Buta Singh.
The contractor had allegedly taken a loan of around Rs 10 crore from a co-operative society on behalf of over 100 people from the Dalit community. He allegedly pocketed the money following which a case was registered against him.
Sweety allegely demanded Rs one crore from Patil to close the case against him with the help of his father.
Patil lodged a complaint with the CBI following which Sweety was picked up from Delhi and brought to Mumbai last night where he was questioned by the CBI.
Deccan Herald is on WhatsApp Channels | Join now for Breaking News & Editor's Picks