The man giving evidence at Javarne Saipani’s ACT Supreme Court trial on Thursday was at the top of the pyramid of a Canberra-based drug dealing ring, prosecutors say.

He and the alleged victim were in business together dealing drugs, but in 2017 the business grew into trouble with debts, including as a result of police raids in which drugs and cash had been seized.

Prosecutors say the senior member of the drug dealing enterprise was in serious debt to his suppliers when he called on his childhood friend Mr Saipani, 25, to standover a colleague for money.

On June 1 last year he is accused of going went to the alleged victim's Watson home, where he pulled out a sawn-off shotgun and threatened to blow the man's leg off if he did not produce $100,000.

Mr Saipaini has pleaded not guilty to a charge of making a demand with a threat to cause grievous bodily harm.

The Canberra drug ring leader told the court he asked Mr Saipani to help get the alleged victim to collect the debts the alleged victim was owed by other dealers down the chain.

But he said he never told Mr Saipani to use a gun. He later received a phone call about the alleged threat from the alleged victim, who sounded “distressed” when he said Mr Saipani had pulled a gun on him.

The drug ring leader said when he asked Mr Saipani about the gun, Mr Saipani said he couldn’t have pulled a gun on the man because it was under the passenger seat that the man was sitting on.

But under questioning from defence barrister James Stewart, the man denied that the conversation with Mr Saipani had not happened.

But he also said that to this day he was not sure if it was true that he had pulled a gun on the alleged victim.

And that given their close friendship there would be no reason why Mr Saipani would not have told him about threatening the man with a gun.

The witness earlier told the court, in response to questions from Mr Stewart, the alleged victim was "known to lie at times".

He agreed the man lived in a "fantasy world".

He agreed that he had asked Mr Saipani to go and speak to the former drug dealer to collect drug debts, and said he had never told his close friend to use a gun.

He agreed under further cross-examination that Mr Saipani would not need a gun to threaten the man, who was already scared of him.

Also on Thursday, the audio of a police record of interview with Mr Saipani from when he was arrested last year was played to the jury.

When asked if he knew either the alleged victim of his threats or the former drug ring leader, Mr Saipani told the officers “no comment”.

Asked about the allegation he had produced a firearm in front of the man, he said “no way”.

When asked to tell the officer more about his response, Mr Saipani said again “no comment”.

The trial continues.