A man was moving suspiciously in Garkhal border belt of Akhnoor, when he was questioned by locals about his credentials, police officials said.
Suspecting him, he was caught and handed over to security forces, they said, adding he was identified as Mohammad Moazzem.
He was then handed over to police, officials said, adding he was later arrested for illegal entry into India.
A currency note of US Dollar 100, passport, and other documents were recovered from him, the officials said.