Subhan visited Pakistan twice in 2012 and was tasked with recruiting young students from Mewat.
Officials said Subhan was in direct contact with LeT commanders like Javed Baluchi and intelligence head Ajam Cheema, reportedly based in Pakistan.
He was getting orders from these Pakistan-based operatives concerning the Mewat module.
According to the official, the special cell learnt about the Mewat module, which was planning to carry out terror strikes in India, in November and busted it with the arrest of Shahid and Rashid in December 2013.
The official said Subhan was coordinating with his nephew and LeT terrorist Asahbuddin, who is lodged in Kolkata jail, to create the Mewat module.
Asahbuddin was brought to Delhi by the special cell which got his remand till Aug 2.
He was serving a life term in the Kolkata jail for his role in the 2001 kidnapping of Khadim's owner Partha Roy Burman and his involvement in a haul of explosives recovered in Gujarat.
He and his gang members collected a hefty ransom in crores in exchange for Burman's release and the money was used to finance the terror network.
Police said Asahbuddin was facilitating the supply of money needed by Subhan through hawala.
Subhan, police said, met Asahbuddin in April 2013 and discussed about the recruitment process in Mewat.
"Asahbuddin also visited Mewat after coming out from the Kolkata jail in August 2013 on a 15-day parole," said the official.
The official did not divulge the number of people indoctrinated by Subhan in Mewat but said police were on the lookout for some of his associates.