Manojlal Bhawarlal (48), the 24th accused in the case, was taken into custody from his house at Athazhakkunnu in Kannur district, police said.
He was awarded life imprisonment in the Mumbai blast case by the trial court and after 14 years in jail, he was released on special consideration.
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The accused had married a Kannur-based woman in 2008 and was living in Athazhakkunnu, police said, adding, they have informed the CBI at Mumbai of the matter.
Bringing the curtain down on the 20-year-long judicial proceedings, the Supreme Court had on March 21 this year upheld death sentence of Yakub Abdul Razak Memon, a key conspirator with Dawood Ibrahim in the serial blasts.
The apex court had said 33 others will serve rigorous jail term "for their whole life". It also clarified that the convicts, undergoing life imprisonment, are expected to remain in custody till death.
The court had also ordered that Bollywood actor Sanjay Dutt return to jail to serve three-and-a-half years sentence for possessing illegal arms.
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