The National Investigation Agency (NIA) on 24 October arrested Hizbul Mujahideen chief Syed Salahuddin's son Syed Shahid Yusuf in a 2011 terror-funding case.
Yusuf, a J&K government employee, was found to have been receiving and collecting funds through international wire money transfer from Saudi Arabia-based Hizbul Mujahideen member Aijaz Ahmed Bhat.
Bhat is wanted in India for funding terror activities in the Kashmir Valley.
Yusuf will now be produced before the NIA Special Court in New Delhi and will be further interrogated by the investigating agencies.
The NIA already filed two charge-sheets against six other accused in this case in 2011.
Out of these accused, two are in custody and others including Salahuddin are absconding and residing in Pakistan and PoK.