Yahya Khan, arrested recently in Bangalore on charges of having terror connections, has  said he had planned to start his own software firm and  stolen data from various organisations that he worked for.

Sources said the confession would indicate that Khan had plans to launch a major cyber terror war from Karnataka.

Khan said he had planned to name his company as 'Fateh Solutions' (Conquer Solutions). Through this company, sources said, he had planned to fund terror organisations and also share important data so that terror strikes could be conducted.

Khan, who is said to be the president of  Students' Islamic Movement of India in Karnataka, had also started recruiting people from Karnataka and Kerala [Images] for the same.

The police said Khan also planned to appoint at least 20 persons in his company.

The police are concerned as they now see a disturbing trend of more educated youth,  especially with software background, taking the terror path.

According to an annual report of McAfee an internet security company, various means were being developed to target financial markets and government computer systems. It is also said that attacks in future would be more sophisticated.

Investigators claim that Khan, too, may have been treading the same path. He wanted to build his company over the years and start a full-fledged cyber terror war. He also confessed that he had already started financing terror outfits across the country through the Internet and had also been setting up sleeper cells in Karnataka.

As he hails from Kerala, he recruited  more men from that state. The police said that a key man in the terror network, Sibli, a Keralite, had gone missing.  Sibli, too, is a software engineer.