McDonald Bruce Andrew, who was to take flight to Goa with his wife and children, was found with Iridium company's satellite phone when he was intercepted at about 1.45 PM yesterday by personnel of the Central Industrial Security Force (CISF), they said.
He was granted bail on a personal bond of Rs 15,000 yesterday itself.
India has banned the use of sat phones and even if foreigners coming in with valid documents permitting them to carry such phones, the domestic authorities reserve the right to overrule such permissions.
"McDonald claims he was not aware of the rules in India. He is carrying the satellite phone as it will not have any network problems like cell phone have and says he has no other ill intentions," Thate said.
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"The satellite phone has been confiscated. McDonald's lawyer approached police and he was granted bail on personal bond of Rs 15,000 at the police station yesterday itself," he added.
According to police, McDonald arrived in India with his family from Malaysia on June 11 and checked into a five-star hotel in Mumbai. His wife is originally from Goa.
A satellite phone connects to satellites unlike the normal cell phone, which is connected to the terrestrial mobile sites. The Sat phones bypass the local telecom system which means the agencies are unable to track the conversation.
Further it also interferes with the signals that are picked up at the army stations and also by intelligence agencies.