Senior separatist leader Shabir Shah is being flown to Delhi on Wednesday following his arrest by Enforcement Directorate (ED) officials in Srinagar on Tuesday.
Police sources said ED officials "executed a non-bailable warrant issued against Shah by a Delhi court".
Shah was shifted from his uptown Sant Nagar residence here to Humhama police station in Badgam district on Tuesday evening.
He was to reach Delhi on Wednesday morning, sources said.
"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 terror funding case being investigated by the agency.
