Mohamed Zahir Hussain (37), suspected to be an accomplice of a Colombo-based ISI operative, was apprehended after a raid at an undisclosed location yesterday following intelligence inputs.
Some counterfeit currency and incriminating documents were also seized from him.
He was produced before a magistrate late last night and remanded to judicial custody.
Hussain during interrogation revealed that he had visited Tamil Nadu several times in the recent past. He also reportedly claimed he was a textile merchant who visited India for "bonafide" purposes, police sources said.
A case has been registered against Hussain under the Unlawful Activities (Prevention) Act and various sections of the IPC.
