Vijay Kumar, 22, a painter from Dodda Bommasandra in Vidyaranyapura in Bengaluru was arrested following a tip-off, the police said.
The CID believes that he assisted Praveen Khandya, the prime suspect and secretary of the Vishwa Hindu Parishad's Shivamogga region, in abducting financier Tejas Gowda.
CID sleuths were interrogating Vijay Kumar to obtain information about Khandya's whereabouts. Vijay Kumar will be produced before a court in Chikkamagaluru on Saturday, a senior police officer said.
The number of arrests in the case has gone up to eight. Besides Khandya, other suspects Naveen Shetty and his son Ashwin Shetty are still at large.
Handibag had committed suicide by hanging himself at his in-law's house in Murugod in Belagavi district, after his name came up in the kidnap case.
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