Two doctors - Vikram Singh Chouhan and Nawan Kishor Pandey - in Siwan district have alleged that the legislator demanded Rs 20 lakh from them.
In their complaint, the doctors also said Shyam threatened them with dire consequences if the money was not paid.
"A case has been lodged against Shyam Bahadur Singh in connection with alleged demand of extortion from two doctors," a district police official said.
However, Shyam has refuted the allegations.
He is a controversial legislator, who had embarrassed the party and the government by dancing with bar dancers at different marriage functions.
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