While Grover (41) was arrested on Sunday morning after being brought here on a transfer warrant from the Bhuj Central Jail he had been sent there after being arrested under the PASA Act on October 28, 1998 Jay Jalaluddin Rana alias Zaheer (28) was picked up at midnight from a flat in the Fatehgunj area of Vadodara. The police will seek remand for the two on Monday.

Assistant Commissioner of Police (special branch) M B Pethani, while talking to reporters on Sunday evening, said that during the preliminary interrogation, both Grover and Rana had both confessed to harbouring Munshi.

According to the police, Grover said he had veered away from the family business in textiles and yarns and into the real estate over the past decade.

He claimed to have come into contact with Munshi through Hemu Panchal, an associate, when he had to recover Rs 3.5 crore from one Vinay Patel, owner of Divya Dyeing, and then to using him regularly to have land evacuated and extract money from businessmen who did not honour deals.

Grover also confessed to links with the Mumbai-based Chhota Rajan gang and said that Munshi, too, had been associated with them, the police said.

Rana, on his part, told the DCB that he, too, had come close to Munshi over a business deal gone wrong. After the gangster escaped from the custody of the Vadodara police in early 1998, he had lived at Rana's house in Fatehgunj and various hotels in Vadodara, while masterminding operations in Surat, Rana said.