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The crime branch of police, which is probing the case, had detained bodyguard Amarendra Mishra for questioning earlier in the day.
He was booked under section 29 (B) of the Arms Act which deals with the offence of handing over a weapon to someone without ascertaining if the person is legally permitted to possess it, an official said.
Noronha, a local businessman and `social worker’, shot Ghosalkar during Facebook Live in suburban Borivali (West) on Thursday evening and then killed himself. As per police, he used a pistol for which Mishra held the license.
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Noronha, who faced many cases, was earlier arrested in a rape case and spent nearly five months behind bars.
While there was a tussle between Ghosalkar (40) and Noronha, who had political aspirations, the latter suspected the former had implicated him in the rape case, his wife told the police.