Sahil, one of the four persons alleged to have supplied cocaine to late BJP leader Pramod Mahajan's son Rahul Mahajan, on Saturday surrendered before police at a hotel.
He was taken into custody at Jehangir Hotel in the city after his lawyer Aslam Goni advised him to surrender, officials said.
Sahil, a 21-year-old student, said waiting outside the hotel that he had not supplied any drugs to Rahul Mahajan who was taken critically ill after a party at his Safdarjung residence in New Delhi early on Friday.
Police are expected to conduct a search of the residence of Sahil in Nigeen area in Srinagar to look for any clues related to the case, the officials said.
A special team of Delhi Police has also arrived in town and met senior police officials of the Jammu and Kashmir police. Shahil would be taken to Delhi either on Saturday or Sunday, they said.