Roshan Juman Khan, a Mumbai resident, was released on Thursday, sources said though an official word from the Spanish authorities was awaited.
The second person, Sarosh Ali Mohammed, was released on Wednesday with the Spanish authorities in Madrid saying he hails from Hyderabad.
It was not clear whether it is the City in India or Pakistan. Initially, it was believed that two purported Indians were among those who were detained.
After a lot of dilly-dallying, the Spanish authorities had provided the passport number of Khan and his antecedents were checked from Mumbai and there was nothing found against him. He had gone to Spain in September last year after he was sponsored by one of his relatives, who has been staying in that country for several years now.
The Indian authorities gave him a clean chit and said security agencies had nothing suspicious about him and that there were no doubts about his background.
Reports reaching through diplomatic channels here said that he was released on Thursday. Mohammed, whom the Spanish authorities had stated to be an Indian hailing from Hyderabad, was released on Wednesday after India, through Interpol, pressed the authorities in Madrid to provide his passport details to enable them to carry out a check on his background.