The police on Saturday arrested gangster-turned-politician Arun Gawli in connection with a breach of trust case a city builder filed against him, a top police official said.
"Gawli had taken Rs 4 crore from the builder, who was engaged in a housing redevelopment project in central Mumbai. He was supposed to pay the sum to labourers working on the project but allegedly siphoned off the funds," Joint Commissioner of Police (Crime) Meeran Borwankar said.
The Economic Offences Wing of the city police arrested Gawli, the president of the Akhil Bharatiya Sena.
He is the MLA from Chinchpokli constituency in central Mumbai.
