Secretary General of Hurriyat Conference led by Syed Ali Geelani Shabir Shah was arrested by Enforcement Directorate from his residence in Srinagar late last night.
Reports said that Shah is being flown to Delhi on Wednesday following his arrest.
Police sources said ED officials “executed a non-bailable warrant issued against Shah by a Delhi court”.
Shah was shifted from his uptown Sanat Nagar residence to Humhama police station in Budgam district on Tuesday evening.
“The arrest followed disclosures by hawala dealer Muhammad Aslam Wani, who has admitted having passed on hawala money worth Rs 2.25 crore to Shah,” sources said.
Seven separatist leaders, arrested on Monday by the National Investigation Agency (NIA), were produced before the designate NIA court in Delhi on Tuesday.
The court remanded the accused to NIA custody for 10 days for custodial interrogation in connection with a funding case being investigated by the agency.