Dhaka (Bangladesh), Mar. 27 : Bangladeshi Police have arrested a British man whose charity is suspected of running a militant-training camp in the guise of an orphanage on remote Bhola Island.

Greater Manchester-based Faisal Mostafa, who was acquitted in 2002 of being part of an al-Qaeda bomb plot, was arrested on Wednesday night in Dhaka.

"Dr. Mostafa, 45, who has is a PhD in metals corrosion, was detained along with his Bangladeshi agent. They are charged with illegally keeping arms, explosive and ammunition, and with militancy and terrorism," The Times quoted Captain Shafiul Alam of the elite Rapid Action Battalion, as saying.

The Foreign and Commonwealth Office said that it was investigating reports of the arrest but could not confirm it.

"We are in contact with the Bangladeshi authorities and his family."

The RAB says that it discovered a suspected Islamic militant training camp and weapons factory in a raid on an orphanage run by Mostafa's charity, Green Crescent, on southern island of Bhola on Tuesday.

The RAB raid recovered evidence including nine or ten firearms, 3,000 rounds of ammunition and enough explosive for hundreds of grenades.

They also found Islamic literature "in line with extremists like bin Laden" and had arrested four people.

Mostafa's family has said that he set up the orphanage because of a humanitarian desire to help poor children.

Ghulam Mostafa, his father, added that his son had a lifelong interest in hunting and made his own ammunition using spent cartridges and gunpowder.

Mostafa was acquitted in February 2002 of plotting to cause explosions. He was acquitted of a similar charge in 1996 after a trial at Manchester Crown Court, but was found guilty of illegally possessing a firearm and sentenced to four years in prison. (ANI)