Sarkar had been arrested by the detection and crime branch of Mumbai police on September 15 for his involvement in stealing and selling 10 cars in the city. His three bodyguards, and the manager of his hotel had also been arrested.

Police are hunting for the fourth accused in the case, Mustaq Kazi. Kazi's role in the series of car thefts has, however, been withheld, as it might hamper investigations.

Meanwhile, Sarkar's son Sahid, his father Nazar Hussain, brother Nasir, nephew Mustaq, and his brothers-in-law Salim Rupani and Noor Tarwalla have moved the Sessions Court for anticipatory bail in connection with the car thefts. The matter came up for hearing before Principal Judge A S Aguiar.

Police have recovered two foreign-made firearms from Shaukat Sarkar's premises and are trying to ascertain if the weapons arelicensed.

According to police sources, the investigating teams are working on the theory that Saukat had links with a gang of inter-state car thiefs, particularly those based in the state of Goa. Significantly, Goa police have impounded a large numbers of cars, which are suspected to be stolen.

In another case, the Economic Offences Wing of the police today registered a case against the chairman and directors of Hoffland Finance Company for cheating and misappropriation of funds collected from members of the public as investments.

Police said 130 investors have so far complained that they have been cheated to the tune of Rs 1.5 crore. The total amount involved could be well over Rs 4 crore, police added.

The company's director, Brig Bhushan Sharma, who was earlier arrested in New Delhi, has been brought to the city by Mumbai police.