Jamshedpur: Two officials of a Mumbai-based engineering firm were sent to Ghaghidih Central Jail here on Thursday for extorting Rs 1.19 crore from the management of a Potka-based sponge iron factory in the name of gangster Dawood Ibrahim.

The accused have been identified as Mumbai residents Maruti Duttaram Vishwas and Sheikh Wasim Salim, both engineers of Farhan Heavy Electricals.

Police had on Wednesday registered a case against CEO of Farhan Heavy Electricals Fahim Shafi Mujawar and its two engineers on the basis of an FIR lodged by Satyendra Jha, the chief executive officer of Shah Sponge & Power at Hata in Potka, about 25km from the steel city.

Potka thana OC Arvind Kumar Yadav said the management of the sponge iron company had sent a huge generator set for repair at Farhan Heavy Electricals in Mumbai last month.

"The sponge iron company had taken a written commitment that the generator had to be fixed within 10 days. Farhan Heavy Electricals could not meet the deadline but kept pressuring the officials of Shah Sponge & Power to pay the entire repairing cost of Rs 1.19 crore in advance," Yadav said.

Mujawar and his two engineers had allegedly told Shah Sponge that they had connections with Dawood and would destroy the company if the payment was not made.

One week after the stipulated deadline and after the payment of the repairing cost in full, Vishwas and Salim came down to the Shah Sponge factory on Wednesday to install the generator that exploded and conked out as soon as it was started.

The management of the sponge iron firm said the police and got the duo arrested.

"We will grill the accused about their alleged connection with the gangster," Yadav told The Telegraph.