Twelve detonators and seven gelatine sticks were seized from him.
Police said the arrested person, Anandhan had informed them that Murugan had stored the explosive substances without any licence or permission.
After informing police, he had gone to Murugan's house to hide the explosive materials there, police said.
Police found Murugan to be innocent and arrested Anandhan who was found carrying the explosives.
Anandhan had some dispute with Murugan and was conspiring to take revenge on him, though outwardly he was friendly towards him, police said.