A senior police officer told rediff.com that police have evidence to prove that Singh was working for Hizbul Mujahideen, a Kashmir based terrorist group."Singh's name figures in the finance dealing of the Hizbul Mujahideen in Delhi," the official said.

The joint police team after getting intelligence information raided a radio station and arrested Singh on Monday night.

Patna Superintendent of Police R K Rathi said a warrant in connection with terrorist activities has been pending against Singh with the Delhi police. Police suspect that Singh arrived in Patna on Sunday to supply a consignment of fake currency notes to some traders from Gujarat.

Singh is a resident of a village in Bhojpur district in Bihar. He used to regularly visit Patna to meet his brother who runs a school in Rajendra Nagar.