Bhatkal who was arrested from the India-Nepal border Thursday is wanted in the Sheetla Ghat blasts in Varanasi in 2010 and the police will seek his transit remand, an official said.
Another terrorist arrested with Bhatkal, Asadullah Akhtar alias 'Haddi', also a resident of Azamgarh, however is not wanted in any case in Uttar Pradesh.
Inspector General of Police (Law and Order) R.K. Vishwakarma told IANS that serial blasts had rocked Varanasi's Sheetla Ghat Sep 7, 2010 during the evening Ganga aarti, killing three and injuring many.
IM had claimed responsibility of the blasts through an e-mail, the official added.
"Since he was out of the hands of law, there has been no evidence against him so far. But we propose to interrogate him now and bring him to UP for interrogation," officials said.
Bhatkal's accomplice Asadullah is a resident of Baj Bahadur locality in Azamgarh and has no case registered against him in UP.