The arrested man, Zaki from Rehman Lakhvi, is believed to be the leader of Lashkar-e-Taiba, the Islamist extremist group that, according to India, was behind the attack in Bombay that claimed the lives of 166 people.
According to an assessment by the UN Security Council, Zaki from Rehman Lakhvi can be linked to terrorist activities in a number of regions and countries over the years, including Chechnya, Bosnia, Iraq and Afghanistan.
He is now suspected mainly of financing terrorist activities.
It was in November 2008 that several armed men in Bombay attacked the central station, two luxury hotels, a café and a Jewish cultural center in an attack that was one of the bloodiest acts India has seen in many years.