Highly-placed sources in the Jammu and Kashmir Home Department said that the man was detained in the wee hours after a massive manhunt was launched to nab him.
Last week, the security agencies had monitored his activities including his conversation with one "Furqan", suspected to be a Lashker-e-Taiba operative across the border, and claiming that a group had entered India through Bangladesh and Nepal to carry out blasts in the national capital.
He is alleged to have been roped in by overground workers of separatist and terror groups for making such frivolous calls and creating panic among the intelligence agencies and unrest in other parts of the country, the sources said.
The Kashmiri youth had earlier also misguided the intelligence agencies by indulging in these kinds of acts, they said.
However, in absence of any stringent law, he managed to walk free, the sources said.
The successive warden notices issued by the US and sharing of intelligence by the American authorities raised eyebrows this time following which the authorities decided to get to the bottom of the case.
The US had issued a fresh advisory warning of "imminent" terror attacks in New Delhi, particularly in busy market places like Connaught Place, Greater Kailash and Chandni Chowk, which are "attractive targets" for terrorist groups.
"This warden message provides updated information related to the April 21, 2010 warden message and additional information related to the travel alert issued for India on April 16, 2010," the renewed advisory primarily intended for American citizens in India had said and also pointed out that there were "increased indications that terrorists are planning imminent attacks in New Delhi."
While countries like the UK and Australia were quick to follow, issuing travel alerts, Delhi Police went on high alert increasing its presence at all important places in the national capital, especially the markets mentioned in the advisories issued by the respective countries.
In the meantime, the Kashmiri youth, who was picked up after series of night-long raids by the Jammu and Kashmir Police, is understood to have told his interrogators that he had been promised money for creating such panic.
