Mohammed Aijaz Ahmed, a terror suspect and an associate of slain Azam Ghori, was arrested in Kuwait with the help of Interpol and brought to Hyderabad, police said Friday.
Aijaz Ahmed, 35, is a native of Andhra Pradesh's Nizamabad district. He is an accused in a murder case and was absconding since 2006.
He was presented in a court after being brought to Hyderabad, and was sent to judicial custody.
According to T. Krishna Prasad, additional director general of police, crime investigation department, Ahmed is an accused in a contract murder case. The crime was committed in Vijayawada to allegedly raise funds for the Indian Muslim Mohammadi Mujahideen (IMMM).
Ghori, an alleged agent of Pakistan's Inter Services Intelligence (ISI), had reportedly set up the IMMM to carry out terrorist activities in India at the behest of the Lashkar-e-Toiba. He was killed in a gunfight with the police in Nizamabad district in April 2000.
The same year, Ahmed was arrested in connection with the murder of one K. Lakshminarayana of Vijayawada. The deceased's neighbour G. Radhika and G. Sambasiva Rao had given money to Ghori, who along with Ahmed and others committed the crime.
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Police said the money was used for carrying out three blasts at two cinema theatres and a sweet shop and also for the murder of a jeweller in Hyderabad.
Ahmed, along with his associate Anil Benhar, allegedly played a key role in supporting IMMM financially.