An attempt by terrorists to set up a base in Delhi for a strike has been thwarted with the arrest of a Pakistan-trained activist of Al Jehad outfit.

Twenty six-year-old Abdul Hai Peer, hailing from Sopore in Kashmir valley, was nabbed by Crime Branch sleuths from Adarsh Nagar area of North Delhi on Monday evening where he was running a hotel since October, 2003, Deputy Commissioner of Police (Crime) Deependra Pathak told PTI.

The police claimed to have recovered a 7.63 mm Spanish pistol, foreign currency and some Pakistani visa papers from the accused, who was acting as a sleeping agent to set up a base for the outfit in Delhi, he said.

Peer had allegedly undergone arms training in an Al Jehad-run camp in Pakistan in 2002, Pathak said, adding earlier he had been involved in smuggling of drugs and arms for the terrorists.

During his preliminary interrogation, he has allegedly told police that his outfit was planning to bring RDX to the capital for a possible strike.

Pathak said the accused had lavish lifestyle although his hotel business was not doing well.

Investigators were trying to ascertain the specific plans of the outfit in Delhi.

The seizure includes 7,000 South Korean Yuans, a few hundred Roubles and Japanese Yens, the DCP said.