The Anti-Terrorism Squad (ATS) in Mumbai yesterday arrested key suspect in the bombing of US Centre in Kolkata.

Muzzamil Sheikh, who was picked up from a South Mumbai hideout, is also believed to be involved in the kidnapping of Khadim Shoe owner Partho Roy Burban in November, 2001. The victim was released after he coughed up Rs 3 crore ransom.

Investigations indicate that the ransom was used to finance the bombing of the US Centre on January 22, 2002. Sheikh and his mentor Aftab Ahmed Ansari are members of
the Jaish-e-Mohammed and were trained in Afghanistan.

A senior officer in a central intelligence agency informed that Sheikh had slipped into Mumbai to carry out a major strike. He was remanded ATS custody after a brief presence before a magistrate yesterday.

Investigators said they are questioning Sheikh about his ploy in Mumbai.

''We have just started questioning him,'' said an officer.

According to the police, Ansari's men had also kidnapped Rajkot-based businessman Bhaskar Parekh before he was released on December 1, 2000. The ransom of around Rs 3 crore was used to buy weapons from Pakistan and carry out terrorist activities in Mumbai.

However, the weapons were intercepted by the Border Security Force along the Kutch border on May 27, 2001. While Sheikh managed to escape, associates Sayeed Sheikh and Asif Raza Khan were nabbed by the authorities.

Ansari alias Faran Mallik from Baneras was influenced by Jaish-e-Mohammed chief Azhar Masood and Azam Cheema Sheikh in Tihar jail where the duo was detained in 1999.
Ansari was also serving a jail term.

Subsequently, Ansari and his associates underwent guerrilla warfare training in Afghanistan before returning to Mumbai.

Ansari was deported to Mumbai on February 9, 2002 and was transferred to Tihar jail. He was travelling on a Pakistani passport in the name of Safeer Muhammad Rana, police sources informed.

Huge money from the ransom was also wired to Mohammed Atta, a key suspect in the 9/11 attacks in the US.