The official said formalities for his remand are underway and they hope to complete it soon.
The official also said that Bhatkal will be questioned by the Anti-Terror Squad before Aug 10 after which he is likely to be taken on remand by other states.
Additional Director General Mukul Goyal said Bhatkal had a role in the Sheetla Ghat blasts in Varanasi Dec 7, 2010 which were executed by IM operative Tehseen Akhtar.
Akhtar had told police and other security agencies of Bhatkal's complicity in the explosions at the ghat, adjoining the main Dashashwamedh Ghat, just after the evening prayer ritual had commenced.
It killed a two-year old girl while more than 36 people sustained serious injuries.