According to sources the raids came after the Mumbai blast probe.
Manzar is the main accused in the 2007 Hyderabad blast and has been absconding since then.
Though the Indian Mujahideen continues to be a prime suspect in the blasts, the possibility that SIMI could also be a part of the terror act has not been denied.
According to sources there is a possibility that these two groups could have joined hands together, though investigations reveal that there there has been no interaction between the members of the terror outfit in planning or executing the blast.
Both the members of the terror outfit have interacted through emails and phone in the past.
"They have not communicated through phones, and it appears that the blasts were planned at one place and then executed," a source said.
"There are police teams in both IM and SIMI strongholds at the moment, and vital leads are being picked up from these places," said the source.
"Looking at the manner in which the bomb was made it becomes clear that it was assembled by a professional and not the module which had put together the bombs during the Delhi attack prior to the Commonwealth Games ," the source added.
"They have used Improvised Explosive Devices, and the bombs were triggered off by a cell phone. However there is no trace of the phone yet," said the source.