A Dawood Ibrahim aide, who is a key accused in the 1993 serial blasts and absconding for the past 15 years, was on Thursday arrested from neighbouring Thane and he claimed that the underwold don continued to live in Karachi.
"Acting on information the Unit VI of the Crime Branch has arrested Karimulla Khan Osan Khan, an accused in the 1993 serial blasts case," Joint Commissioner of Police (Crime) Rakesh Maria told reporters.
Khan, in his forties, was arrested from his residence in the suburb of Nallasopara where he was living with his wife and three children and working as a real estate agent, he said.
Khan, an aide of deceased gangster Ejaz Pathan, is accused of having supervised the landing of RDX and guns prior to the blasts, at Shekhadi in Raigad district, a few months prior to the March 12, 1993 bombings in the city, Maria said.
He is suspected to have fled from the city in June 1993 and a red corner notice had been issued against him by Interpol in 1995, he said.
After initially going to Dubai, Khan travelled to Karachi where he was working at the residence of Dawood and has seen the underworld don with his aides there, Maria said.
"His statement is important since he has verified that Dawood, his brothers Anees and Noora and aides like Chhota Shakeel and Tiger Memon, are living in Karachi," he said.
Dawood has been designated a global terrorist by the US.
Despite India seeking his custody, Pakistan has consistently denied the gangster's presence in the country.
"While living in Karachi, he used to work at Dawood's residence where he did odd jobs," Maria said.
Khan, who was living in Pakistan with his family, returned to Mumbai in 2006 by first travelling from Karachi to Kathmandu by air and then using the land route to enter India.