"There was a time when Dawood Ibrahim, Chhota Shakeel, Sharad Shetty used to decide who would be Police Commissioner of Mumbai and who would sit in the 'Mantralaya'. Indira Gandhi used to go and meet Karim Lala. We've seen that underworld, now it's just 'chillar'," Raut was quoted as saying by news agency ANI.
Karim Lala an underworld don operated in smuggling, narcotics, gambling, forced property evictions, and extortion rackets in Mumbai for over two decades. He died in 2002 at the age of 90.
The Shiv Sena leader also claimed that he has photographed the fugitive don Dawood Ibrahim and has even threatened him.
"I have conducted photo session of Dawood Ibrahim and others. There are a few people in the country who have seen and talked to Dawood Ibrahim. I have seen him, talked to him several times and even threatened him but that was a different time.
Earlier in the public interview, he was asked about the time when the Shiv Sena mouthpiece `Saamana' targeted Congress president Sonia Gandhi, calling her "Italian woman".
The Sena is now sharing power with the NCP and the Congress in Maharashtra.
In his reply, Raut pointed out that NCP chief Sharad Pawar left the Congress on the same issue (Sonia Gandhi's origins), but later he formed alliance with her.
"A lot of time has passed. Her age is now 70. She is the president of the Congress and BJP also had criticized her.
Now she is a citizen of India. Will you remove her through the Citizenship (Amendment) Act, is it possible?" he said.
(additional information from PTI)