Alishah, the son of Dawood's late sister Haseena Parkar, and Aisha Nagani got married at a mosque in Nagpada area of south Mumbai in the presence of their family members and close friends.
A handful of mediapersons were present outside the mosque and were kept at bay by family members.
The marriage rituals started at around 11am. The function lasted for about one-and-a-half hours and was attended by nearly 100 people.
The family would host a reception for the newly weds at a city hotel on Wednesday evening and the fugitive don was likely to view the event via videocalling on Skype.
The Mumbai police crime branch has directed the anti-extortion cell to keep a close watch at the event.
Police personnel will maintain a strict vigil on the proceedings, a senior official said.
The police did not rule out rival gangsters trying to disturb the peace.
Alishah's elder brother Danish had died in a road accident in 2006. His sister Umaira got married in May 2015.
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