However the arrest was made public on Monday morning following which they were produced before a local court.

Police sources told rediff.com that these three men, Ibrahim of Kaup, Mohammad Asif [Images] and Sayaf of Kasargod, Kerala [Images], were running a major extortion racket in Mangalore since the past several months.

There were several complaints by prominent businessmen in which they had stated that they were being threatened for money. Based on these complaints the police carried out a late night operation and arrested these three men.

The police said that since the past few years the Gang has been repeatedly trying to set up base in the coastal town. Several henchmen have been appointed in these areas, the police added.

The two major provocations which hit Mangalore are the rising real estate prices and also the fact that the city being a costal town facilitates the underworld to carry out smuggling activities easily.