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A team from the Deonar police station nabbed the accused, Vilas Balaram Pawar alias Raju (62), in the Chembur area on Thursday evening, an official said.
He said Pawar is involved in serious crimes such as murder and attempt to murder and has cases registered against him under the Arms Act.
The accused had allegedly shot and injured a man in Ghatla village in 1992 and was arrested in the case, released on bail in 2008, and has remained absconding since, the official said.
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The official said Pawar lived in the Nerul area of Navi Mumbai and supplied labour to construction sites.
He said the accused was an active member of the Chhota Rajan gang and was involved in gunning down a man in Dadar in the 1990s, the official said.
The official said Pawar was produced before a court on Friday and was remanded to judicial custody.