Police forces of several states were on the look out for him.
Special Commissioner (Special Cell) S N Shrivastava said, "We have arrested Neeraj Bawana early this morning. He was arrested around 3:45 am from Munda road following a tip off".
Police said that Bawana is one of Delhi's most wanted gangsters.
Bawana allegedly runs an extortion racket in outer, north west and west Delhi. His brother Rajesh Bawana was arrested last year while his mother and another brother were recently arrested from IGIAirport while carrying illegal ammunition.
His gang had allegedly played a part in the escape of Amit alias Bhura, who was freed from the custody of Uttarakhand Police while he was being produced at Baghpat court.
Bhura was arrested a couple of days ago by Patiala Police.