Mohammad Ali alias Vikram Sen, an activist of the Students Islamic Movement of India (SIMI), was arrested from Kareli town of Madhya Pradesh's Narsinghpur district early on Saturday, police said.
Ali is believed to have been working as a treasurer for the state unit of the banned outfit, police inspector Karuna Dwivedi told IANS on phone.
Meanwhile, at least two teams of Gujarat police have reached Indore and Jabalpur in search of SIMI activists believed to be linked to the serial blasts in Ahmedabad and New Delhi.
Five serial blasts in New Delhi on Sep 13 claimed 24 lives and left about 100 injured. On July 26, 22 blasts had ripped through Ahmedabad, killing at least 55 people.