New Delhi, Jan 29 (IANS) An extortion racket being operated from Delhi's high-security Tihar jail was busted with the arrest of a 27-year-old compounder working in the jail dispensary, police said Tuesday.

Arun Kumar, who had collected an extortion amount of Rs.50,000 on the directions of a Tihar jail inmate Amit Shukla was arrested Sunday from his residence in east Delhi's Karawal Nagar, said Sanjeev Yadav, deputy commissioner of police (special cell).

Shukla had called a businessman of Uttar Pradesh's Ghaziabad and asked him to pay Rs.50,000 as extortion money by threatening him of dire consequences.

"Fearing for his life, the complainant had given Rs.50,000 as extortion money to Arun on the directions of Shukla with the assurance that the remaining amount of ransom shall also be paid shortly," said the officer.

Arun Kumar told interrogators that he has been working as a compounder for four years at the dispensary of Tihar Jail on contract.

"During this period, he came in contact with Shukla and they developed friendship. He also procured a mobile phone and a SIM card for Shukla, which was to be used for making extortion calls," said the officer.

An amount of Rs.44,000 was recovered from the house of Arun Kumar which he collected from the victim at the direction of Shukla.

"Kumar has been sent to judicial custody. The antecedents of Kumar are being verified. Further investigation is underway," said the officer.