The Patiala House court in Delhi on Friday sent Kashmiri businessman Zahoor Ahmad Shah Watali to 10-day custody of the National Investigation Agency, in connection with an alleged terror funding case, reported ANI. The NIA had on Thursday said in a press release that it had arrested Watali.

Watali was produced in court on Friday. The agency also produced a close aide of separatist Shabir Shah, and alleged hawala dealer Mohammad Aslam Wani in court. It said more arrests were likely in the case.

On Wednesday, the agency had conducted searches at multiple locations in Srinagar, Handwara, Kupwara and Baramulla. It had raided premises belonging to the relatives and employees of Watali. “The NIA officials are currently questioning Watali regarding the financial transaction details and property-related records seized during the searches,” said the agency.

The NIA claimed to have found “highly incriminating material pertaining to receipt of funds by Watali from foreign sources, and its further distribution to the terrorists and separatists in Kashmir valley for anti-India activities”.

The agency had raided his premises in June as well. After the raids on June 3, the agency had arrested seven separatists – Hurriyat leader Syed Ali Shah Geelani’s son-in-law Altaf Ahmed Shah, Peer Saifullah, Mehrajuddin Kalwal, Nayeem Khan, Ayaz Akbar, Shahid-ul-Islam and Bitta Karatay – for allegedly funding terror groups in Jammu and Kashmir. They were sent to judicial custody for two weeks.

These raids are part of an investigation into the alleged militancy funding by Pakistan-based groups to stoke unrest in the Valley. Kashmir has seen more than a year of violence after security forces killed Hizbul Mujahideen commander Burhan Wani on July 8, 2016.