New Delhi, April 7 (IANS): One of Delhi's most dreaded criminals who ran extortion rackets targeting businessmen and was wanted in many cases of murder, was arrested on Tuesday, police said.

"We arrested Neeraj Bawana early today (Tuesday) morning from Delhi," Deputy Commissioner of Police (Special Cell) Sanjeev Yadav told IANS.

The 27-year-old gangster was arrested around 3.45 a.m. from west Delhi's Mundka area, following a tip.

"After a brief chase, the vehicle he was driving was cornered. He was travelling along with his associate Mohmmed Rashid. He tried to escape by opening fire towards the police team, but they were overpowered," said Yadav.

With a bounty of Rs.1 lakh on his head, Bawana was known to be a notorious extortionist who targeted rich businessmen and realtors in Delhi and the National Capital Region.

He was later produced before the Patiala House court which sent him to four days in police custody.

A resident of Bawana area in west Delhi, he was wanted in many cases of murder, extortion, attempt to murder and other cases. He figured in the list of the capital's 10 most wanted criminals compiled by Delhi Police.

His brother Rajesh Bawana was arrested in 2014, while his mother and other brothers were recently arrested from the Indira Gandhi International Airport while carrying illegal ammunition.

His gang had also played a role in the escape of Amit alias Bhura, who was freed from the custody of Uttarakhand Police while he was being taken to be presented before a Baghpat court in December 2014.

He was on the run since October 26, 2013, when he was provisionally released by a court.

A police official said it was in 2013 when his friend-turned-bitter foe Neetu Daboda, the then reigning don of Delhi, was killed in a shootout by the Delhi Police special cell.

He saw it as the best opportunity to assert himself and to take over from Daboda, said the official.

Neeraj Bawana "was collecting a steady stream of money by systematic extortion" from factories operating in Narela and Bawana.

"He was also the prime protector of gambling and betting dens operating in a clandestine manner within the areas of his influence," the official said.

Neeraj Bawana, who was born in 1988, is the son of Delhi Transport Corporation (DTC) bus conductor Prem Singh. At the age of 19 years, he was arrested for the first time in Haryana.

"He never looked back and developed a formidable syndicate. He befriended, waylaid and killed many gangsters and local criminals," said the official.