The 22-year-old man, whose identity was not disclosed, was taken into custody under a court warrant at 11.45 pm last night, officials were quoted as saying by media here.
Police did not disclose details about the suspect or whether he was a member of any organisation. Officials said they were conducting further investigations.
On Monday evening, a man hurled two objects at the Indian envoy's car that was parked in front of the High Commission on Ameer Ahmed Magu here. One of the objects made a hole in the rear windscreen of the Mercedes Benz though no one was injured in the attack.
The government said in a separate statement that such unlawful acts against any diplomat would not be tolerated. It assured that necessary action would be taken to protect diplomats.
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"The government assures that the cowardly attack will be swiftly investigated and those responsible brought to justice," the statement said.
The Indian High Commission expressed "great concern" at the attack and said such acts "impact" the close and robust ties with the Maldives.
The mission said Shahare was in the car minutes before the attack and it was "evident that there was malicious intention to cause damage to the property and perhaps to the occupant of the car".