A 30-year-old man, allegedly a member of an extortion gang in Jamshedpur, was arrested on Tuesday night along with a loaded countrymade revolver.

Police are looking for two aides who managed to escape during the chase.

City DSP Animesh Nathani said they acted on a tip-off that a gang was planning to intimidate traders into paying money. "A patrol party led by Sakchi thana OC Madan Kumar Sharma tried to stop a speeding bike, carrying three youths and coming from Kasidih-end. When the two-wheeler tried to dodge security check around 10.40pm, the patrol team chased them. The bike skidded near Manokamna Mandir. One person was caught," he said.

Jasbir Singh, the DSP said, was a resident of Namda Basti in Golmuri. Besides a revolver, a .315 mm cartridge, two mobile phone handsets and the bike were seized from him. Two others riding pillion with him managed to flee taking advantage of darkness.

"During interrogation, Jasbir has said that one of the two youths is Ravi Khera, who was released from Ghaghidih Central Jail in February, while he didn't know the other," the officer said.

Ravi and Jasbir were involved in the firing on a liquor shop owner in Telco in September 2016. Both had been arrested and sent to jail on extortion and other charges. They received bail in February. "We are looking for Ravi. It seems the gang was planning to extort traders," the DSP added.

In a similar case, one Tej Bahadur Srestha (27), alias Bablu Thapa, was arrested from his Ulidih home early on Wednesday.

"Thapa has confessed about his association with the notorious Raja Sharma gang. We found a countrymade pistol on him," said Patamda DSP Ajay Kerketta.

Raja Sharma, who is in Ghaghidih jail along with aides Ashish Srivastava, Ankit Sharma and Kanu Vikas - all residents of Dimna Road in Mango, extorted builders, transporters and brick kiln owners. "The arrested youth acted on the orders of jailed Sharma to extort targets," the DSP added.