Seven separatist leaders, arrested on Monday by the National Investigation Agency (NIA), were produced before the designate NIA court in Delhi on Tuesday.
Indian police had arrested Shabbir Ahmad Shah after raiding his Sanat Nagar residence in Srinagar, late last night, and lodged him at Humhama police station.
The NIA filed a formal FIR against terror funding after Nayeem Ahmad Khan admitted in a sting operation that separatists were receiving money from Pakistan for terror and stone pelting activities in the Valley.
"Numbers of the stone pelters were also tracked by NIA".
The NIA had sought 18 days of remand from the court with the probe into a case alleged funding of militancy and subversive activities in the Valley.
District judge Poonam A Bamba allowed the agency to interrogate in custody Altaf Ahmed Shah, popularly known as Altaf Fantoosh, along with six others to unearth the "complete conspiracy". The mastermind stone-pelters appeared on NIA's radar following an analysis of several confrontations between locals and security personnel.
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Kohli further hailed the investigating agency for its work, saying that those who help terrorists both directly and indirectly try to create unrest so that the security forces can not protect the lives of the ordinary citizens.
During those raids, NIA had claimed of recovering incriminating documents, electronic devices, cash and other valuables worth.
Early in June, NIA had raided 23 locations across Srinagar and Delhi, following the questioning of the seven separatist leaders.
Those whose houses and offices were searched besides Khan, Dar, Islam and Saifullah Gazi are Javed Baba, Zaffar Akbar Butt alias Saif-ul-Islam and business tycoon Zahoor Ahmed Watali.
On being asked about involvement in terror funding case, Shabir Shah said that there is no truth to it and it is political vendetta.
Top leaders including Syed Geelani, Mirwaiz Farooq and Mohammad Malik condemned the arrests as arbitrary and called for a strike on Tuesday to protests the action.