Rajesh Kumar Kaimal, hailing from Pathanamthitta district of Kerala, had stabbed Pooja Kher to death in a fit of rage at her hostel room in March 1996.
Both were management students.
According to the police, Kaimal did not like her befriending other students and had warned her several times.
Police filed a charge sheet against him in a court which, however, had acquitted him.
Later, the state had challenged the verdict in a higher court, which set aside the lower court's order and sentenced him to life imprisonment in 2008.
After his acquittal in 2001, Kaimal fled to Dubai and was staying there, police said, adding, he was arrested yesterday when he came to India on a pilgrimage, and is currently on judicial custody.