Police arrested gang leader Jalal, a sacked police Nayek, and his two accomplices Sattar and Salam in this connection while two others managed to flee with the booty.

Police said businessman Mizanur Rahman withdrew the money from HSBC Bank at the Dainik Bangla intersection.

He went to his house at Arambagh at Motijheel by a rickshaw when a gang of five followed him in two other rickshaws.

"As Mizanur stepped into his house, the gang encircled him and snatched the money holding him at gunpoint," said Abu Saleh, Officer-in-Charge (OC) of Motijheel Police Station.

As the muggers tried to flee away, Mizanur started to scream and locals caught three of the muggers. After a mob beating, they were handed over to the police.

Police were raiding possible hideouts with the arrestees to arrest the remaining offenders and recover the looted money until 10:00pm.

The OC said Jalal was sacked about 18 moths ago for anti-disciplinary activities.