The arrested person was tracked down yesterday through the mobile phone used by him, police said today.
Deputy Commissioner of Police (Bengaluru Central) Sandeep Patil said that the person was produced before the court and is now under judicial custody.
Following the announcement of the award, which will be presented to Bhagwan and others on November 7 in Dharwad, Sahitya Academy had complained about receiving a threatening call.
Recently a letter threatening Bhagwan was delivered to his residence at Mysuru, which came close on the heels of the murder of another noted Kannada progressive thinker and scholar M M Kalburgi in Dharwad.
Bhagwan has incurred the wrath of right-wing activists after he allegedly disparaged the Bhagavad Gita while speaking at a programme in Mysuru in February this year.
Earlier, a Bajrang Dal local activist was arrested in Dakshina Kannada district, a day after Kalburgi was gunned down on August 30, for allegedly posting remarks on Twitter threatening Bhagwan for his derogatory remarks on the Bhagavad Gita.