The Rapid Action Battalion (RAB) on Saturday night arrested ward-33 (Mohammadpur) councillor of Dhaka North City Corporation Tarequzzaman Razib in the capital's Bashundhara Residential area.
Razib was joint general secretary of Jubo League's Dhaka North City Corporation unit, but was expelled after his arrest for breaching party discipline.
Lt Col Sarwar Bin Kashem, director of RAB legal and media wing, said Razib was arrested for his involvement in extortion, terrorism and land grabbing.
Acting on a tip-off that Razib was hiding in an expatriate friend's house, the RAB team conducted a drive and arrested him.
"Seven bottles of foreign liquor, three rounds of bullets, a foreign pistol and Tk33,000 in cash were seized from the house," Sarwar said.
Later, the RAB team conducted a drive at Razib's Mohammadpur residence and seized a cheque of Tk5 crore.
Two cases under the arms act and the narcotics control act have been filed with Vatara Police Station in this connection.
According to locals, Razib exerts his political power to control satellite dish and narcotics business in Mohammadpur.
They said he is involved in extortion and has bought eight apartments in Gulshan and Mohammadpur.
Razib also owns eight cars, including Mercedes, BMW and Land Cruiser Prado, said locals.