Hussain, a resident of Mirpur in Bangladesh, is suspected to be one of the main conduits of IM leaders in India, a senior STF official told PTI on condition of anonymity.
"Zahid Hussain was in touch with all the important Indian Mujahideen leaders and used to supply them with fake Indian currency notes and explosives. He is also suspected to be involved in German Bakery blast in Pune," the official said.
The explosion in German Bakery had left at least nine persons dead and scores injured in February 14, 2010.
"We are investigating all the aspects. He will be produced before the court tomorrow (Friday)," he said.