Paulo Correa, the complainant, alleged that a car driven by Babbar dashed against his scooter when he was riding with his sister.
After the mishap, there was an altercation and Babbar used filthy language against them, he alleged.
Babbar, on his part, filed a complaint against Correa, alleging that Correa smashed his car's window-shield, the police official said.
"We have seized the car," said inspector Naik, adding that a case under the Motor Vehicles Act has been registered and further probe is on.
(With inputs from agencies.)