The police have concrete evidence linking Bollywood film financier Bharat Shah to underworld don Chhota Shakeel, Maharashtra Deputy Chief Minister Chhagan Bhujbal said in a press briefing after Shah's arrest on Monday.

He was a conduit for $50,000 in slush money from an unnamed link in the United Arab Emirates and was also linked to a Rs7.5 million extortion threat against a businessman, Morani, the Press Trust of India quoted Bhujbal as saying.

Shah's role in forcing film personalities to sign on films, give dates and even work for lower fees had been clearly established, Bhujbal said.

According to a source, Shah was initially interrogated by the Crime Branch where transcripts of his conversations were played to him after which he is alleged to have confessed to his links with the underworld.

State Public Prosecutor Rohini Salian said Shah had been arrested on a charge of abetting crime under the Maharashtra Organised Crime Control Act and remanded to police custody till 19 January. He has been denied bail.