A Rayees, believed to be an associate of banned Pakistan-based terror outfit's member Thadiyantavide Nazir, was deported to Mumbai where he was arrested by Kerala Police about a fortnight ago.
"Rayees was deported by Saudi Arabia and Kerala Police took his custody," Union Home Secretary R K Singh told PTI.
Rayees was named as the third accused in a case relating to seizure of ammonium nitrate from Chakkarakkal in Kannur in 2009. During the period of investigation, he had slipped out to Saudi Arabia.
Ammonium nitrate, a controlled commodity, is frequently being used by terrorists to carry out blasts.
Highly placed sources said Rayees was first arrested in the Gulf country for alleged visa violation and he was deported when he completed his sentence there.
A suspected Indian Mujahideen operative Fasih Mohammed was arrested by Delhi Police today after his deportation by Saudi authorities.
Before the deportation of Rayees and Fasih, Saudi Arabia had deported Abu Jundal, an alleged handler for the terrorists who ravaged Mumbai in India's worst-ever terror attacks in November, 2008.