The Karnataka police have arrested M B Ali Iliyas Burhan, believed to the main agent of Abdul Kareem Telgi, the man behind the multi-crore fake stamp paper racket, the Stamp Paper Investigation Team said on Friday.

Police recovered some documents from Iliyas Burhan after he was arrested on Thursday. "It's an important catch," STAMPIT chief R Sri Kumar said.

Burhan has been remanded to police custody till December 1.

Sri Kumar said 38-year-old Burhan had been trying to dispose off Telgi's properties acquired from scam-tainted money.

He said Iliyas Burhan was also making arrangements for Telgi's associates arriving in the city to meet him.