The Thiruvananthapuram railway police on Monday seized illegal cash amounting to Rs 45 lakh from a 37-year-old man, who is a resident of Yelahanka.
The police suspect it to be a case of money laundering and the arrested, identified as Gangaraju, could be a carrier.
Gangaraju, who was held when he was about to board a Bengaluru-bound train from Thiruvananthapuram, told the police that he got the cash from an unidentifiable place and that he was taken there blindfolded.
Cash source not known
Police said he also feigned ignorance about the identity of the people who were supposed to collect the cash from him at Bengaluru.
The police suspect that the money was meant for a real estate deal in Bengaluru.
The accused and the cash will be handed over to officials of the Enforcement Directorate for further investigation, the police said.