After holding a review meeting with senior police officers of Bengaluru city on Tuesday, the minister made the announcement.
A preliminary investigation revealed that Shaikh sent money to the state-based jihadists on three different occasions through his brother Abdul Majid and another person, Abdul Ghulam Ali.
The accused was first arrested in 1999 for stealing a bicycle and later caught again in 2006, the official said, without specifying the offence at the second time.
A multi-agency counter-terror mock drill was conducted at Esplanade One mall in Rasulgarh here on Friday morning.
The Navi Mumbai unit of the ATS arrested five Bangladeshi nationals who were living in India illegally from Jui village in neighbouring Raigad district on March 13, an ATS official said.