Saurabh Agarwal, a residence of Raipur, Chhatisgarh was arrested from the Sunburn venue by Anti-Narcotics Cell (ANC) during the raid at the festival, which is underway at Vagator since yesterday.
Superintendent of Police (ANC) Karthik Kashyap said the youth was arrested after he was found possessing 10 gms charas inside the venue.
During the raid, some more people were also seen consuming drugs at the venue, sources said.
The organisers of the three-day long festival are expecting more than one lakh footfalls during the event.
The event which was earlier held at Candolim has been shifted to Vagator, 30 kms away Panaji, this year onwards.