Maharashtra's anti-terrorism squad (ATS) believe that a Mumbra resident, arrested on August 23 in a fake currency case, can lead them to the perpetrators of the July 13 serial blasts in Mumbai that killed 26 and injured 131.
Mohammed Haroon, 30, was picked up from the Mumbai airport soon after he arrived from Jeddah, Saudi Arabia.
He was charged with possessing counterfeit notes worth Rs80,000 and is currently in the custody of the ATS. However, the ATS is yet to find out who sent the money, the person to whom it was sent, who received it and where.
The ATS is also struggling to establish how much money was sent from Saudi
Arabia, and through which channel.
Haroon was a member of the banned Students' Islamic Movement of India and later joined hands with the Indian Mujahideen, sources said. A look-out notice had been issued against him last year.
Home ministry sources told the Hindustan Times the ATS had informed them that Haroon had revealed during questioning that Pakistan's ISI had funded the July 13 blasts via Saudi Arabia.
Investigators claim Haroon also revealed his role in the serial blasts.
In early August, the ATS had claimed that they were on the verge of a breakthrough in the blasts case after the Mumbai police's crime branch handed over a vehicle thief named Bhima to them.
Bhima had been detained for questioning because it was suspected that he had stolen the silver coloured Honda Activa scooter used to plant the bomb at Opera House. However, the ATS let him go as they did not find anything that could link him to the blasts.