The man, in his 20s, was on a post-army trip to the Far East and had apparently forgotten the bullets in his backpack during his service in a combat military unit.
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Last Thursday, he landed in Mumbai where he was meant to board a flight to another destination.
At the airport, security guards found the bullets in his backpack and took him for questioning. He explained that the bullets were left there from his military service but failed to convince the Indian authorities which held him for two days before releasing him to house arrest.
India is now pursuing legal action against the Israeli and has banned him from leaving the country. It remains unclear whether he will be indicted.
Israelis detained in India under similar circumstances have been known to be held there for months while their cases were argued in court.
The Israeli has hired the services of local attorney and Israeli authorities are working to release him.
Many Israelis have been caught carrying forgotten bullets in their luggage in the past few years and some have been jailed. For some reason, the bullets are not detected during the security checks in Israel's airports.
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