Zahoor Ahmad Watali, who has been sent to custody for 10 days on Friday, used to get the money for Separatists through Dubai, Pakistan and even Pakistan High Commission in India and worked as a conduit for Separatists from over 10 years, sources state.
Watali used to provide money to separatist leaders and got 8 to 9 percent commission, said a National Investigation Agency (NIA) source.
According to the source, he used to get the money through Dubai, Pakistan and even Pakistan High commission in India and worked as a conduit for separatists from more than 10 years.
Watali used the money for terror funding in Kashmir as well as create wealth for himself and has several crores property in Kashmir and Gurugram.
The NIA source added that Naseem Geelani, son of Hurriyat leader Syed Ali Geelani, also received money from Pakistan and Dubai for terror funding.
After Watali was sent to a 10-day NIA remand in connection with the terror funding case today, the agency has indicated that there will be more arrests in this regard.
NIA officials have said that work is underway in this regard, sources state.
Earlier in the day, close aide of separatist Shabir Shah and an alleged hawala dealer Mohammad Aslam Wani were produced before a Delhi Court today in connection with the case.
The Delhi Court on August 14 extended Enforcement Directorate's (ED) remand of Wani, by six days in the terror funding case.
On August 6, the ED arrested Wani from Srinagar with the help of the state police.
Reportedly, Wani was arrested allegedly with Rs 63 lakh, received through 'hawala' channels from the Middle East, and a large cache of ammunition, on August 26, 2005.
The NIA has been tough on Separatists regarding the alleged funding by Pakistan for illegal activities in Kashmir.
On July 24, the NIA arrested seven separatists over money laundering charges, for funding terror in the Kashmir Valley.
All seven separatist leaders - Altaf Shah, Ayaz Akbar, Peer Saifullah, Mehraj Kalwal, Shahid-ul-Islam, Naeem Khan and Bitta Karate - were later sent to 10-day NIA custody.
The accused have been charged under various sections of the Indian Penal Code (IPC) and the Unlawful Activities (Prevention) Act.
The NIA visited Srinagar in May to probe the alleged funding by Pakistan for illegal activities in Kashmir, and questioned several Separatist leaders on the issue of raising, collecting and transferring funds via the Hawala route and other channels to fund terror activities in Kashmir.