The Oshiwara police have arrested Palande and he will be produced before the magistrate on Saturday.
The case under the Arms Act was registered against Palande after twelve 9 mm bullets were found by a police team on Thursday during the search of his apartment in Oberoi Springs building in suburban Andheri. Palande and his wife Simran Sood were reportedly staying in this flat.
According to the police, Palande did not have any licence for keeping the ammunition.
As per the police theory, Palande had become friends with Anuj, son of Tikku, a couple of years ago. He had plans to take over the three flats-clubbed into one. The flats are in Anuj's name.
However, he saw the plan failing when Arun flew down to Mumbai from Delhi early last month and threw out Dananjay and Manoj, who Palande had kept in the flat after making Anuj sign a two-year leave and licence agreement with a German woman. On the fateful day, while Palande took Anuj to Goa in his Mercedes Benz, Manoj and Dhananjaya brutally murdered Arun.
According to the police, during interrogation in the Tikku murder case, Palande confessed that he killed Kakkad last month and dumped his body on Mumbai's outskirts. The police later recovered decomposed body parts of Kakkad from forests at Kumbharli Ghat in Chiplun near Mumbai. Money and some personal reasons led Palande to kill Kakkad, they said.