Osama Elsayed was arrested by the special operations group at the shopping centre in Melbourne's west on Thursday night and charged with blackmail and assault.

The 27-year-old faced the Melbourne Magistrates Court on Friday, where Magistrate Roslyn Porter refused a further application for him to be released and his bail was revoked.

Police claim Mr Elsayed went to a home in Melton West at 2pm on February 9 to recover a drug debt from a man in his 30s who owed between $10,000 and $20,000.

Detective Senior Constable Lisa Apollonio said the man's mother heard a noise coming from the shed and saw Mr Elsayed and an unknown man assaulting her son.

She saw her son in a headlock and the barrel of a handgun forced into his mouth, the court was told.

The witness claimed she heard the accused saying to her son; "We'll call it quits if you hand over $10,000 at 6pm tonight" and "If you don't come up with the goods you're f---ed. If you run to the cops your mum goes first and then the kids".

"No cops," the man replied, his mother claimed.

Mr Elsayed was on bail for charges stemming from a North West Regional Crime Squad investigation into a drug syndicate involving jailed former policeman David Lister.

Mr Elsayed is contesting the charges of possessing weapons and trafficking a commercial quantity of ice in a committal hearing next month.

He was arrested on Thursday after the mother made a statement to police four days after the incident.

Senior Constable Apollonio said the alleged victim made a recorded verbal statement on Friday.

Mr Elsayed's lawyer said there were issues with the complainant's credibility having previously been charged with making a false statement to police.

She said there was also an issue of identification and potential collusion between mother and son.

She said her client, who has no prior history of violence or firearms, had also never breached bail before.

Mr Elsayed was remanded to face court at a later date.