Naik was apprehended after the businessman complained to them that the gangster was extorting money from him, said a crime branch official.
The officer, however, did not divulge the amount of money Naik allegedly demanded.
According to police sources the gangster asked the businessman to cough up Rs 3 crore.
Earlier, a sessions court granted bail to Naik on the cash bond of Rs 15,000 in connection with a case of extortion for allegedly assaulting a civic contractor.
According to police, Naik's men had assaulted the contractor over a property dispute with his cousin, who had approached Naik to recover Rs 15 lakh she had invested in the property.
The property was bought for Rs 15 lakh from a third person and the contractor had mediated in arranging a room for his cousin a year ago. However, the room was later demolished by the Mumbai civic body due to some reason and the contractor's cousin wanted her money back, which had led to differences between the two.
Ashwin had taken over the reins of the gang after death of his brother Amar Naik.
