Mangaluru, June 9 -- Police in Karnataka's coastal city of Mangaluru have arrested a Youth Congress leader and his associate for allegedly extorting Rs 2.77 crore from a local businessman through threats and intimidation, police sources said on Tuesday.

The accused, identified as Nizam, a Youth Congress functionary, and his associate Jitesh, were taken into custody following an investigation into a complaint filed by the businessman, who alleged that he was repeatedly coerced into making large payments under fear of harm to his business and personal reputation.

According to police, the duo allegedly used threats and political influence to pressure the victim into transferring a total of Rs 2.77 crore over a period of time. The businessman...