Sathar, a resident of Aluva in Kerala, was lodged in Ernakulam prison in Kerala and his custody was taken from the National Investigation Agency (NIA).
The NIA had arrested Sathar last month from the national capital in connection with a probe in the unlawful training of SIMI cadres in Kerala.
"Sathar was taken into custody on Friday night. He is on remand till September 23. We are investigating his role in organising the Vagamon camp in Kottayam in Kerala and the subsequent blasts in Ahmedabad," Crime Branch Joint Commissioner of Police (JCP) A K Sharma said.
"He had organised two four-wheelers for the camp. He had brought two Scorpio SUVs and was driving one of them," Sharma said.
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"Also, airguns were purchased from Kochi by his brother for training in the camp. The decision to organise bomb blasts in various cities of India, including Ahmedabad, was taken in the camp," Sharma said, adding he will be questioned on various Indian Mujahideen modules.
Police said that so far he had revealed nothing about knowing Yasin Bhatkal, who was picked up from the Indo-Nepal border on August 29.