As many as 25 diamond traders had lodged a complaint with BKC police station about the theft in December.

The complainants said that Yatish Pichariya, a broker, and his accomplices took diamonds from them promising to find buyers, but vanished thereafter.

The probe revealed that after fleeing the city, Pichariya lived in various places in Uttar Pradesh, Punjab, Rajasthan and Bihar, and even visited the ongoing Kumbh Mela at Prayagraj disguised as a sadhu.

However, he could not sell off the diamonds he had stolen and returned to Mumbai, said Deputy Commissioner of Police Anil Kumbhare.

Acting on a tip-off, police arrested him Tuesday and it led to the arrest of other accused, he added.

The police recovered Rs 38 lakh worth of stolen diamonds from them.

The accused have been booked under IPC sections 409 (criminal breach of trust), 420 (cheating) and other relevant offences.