The Delhi Patiala House Court has extended Hizbul Mujahideen chief Syed Salahuddin's son Syed Shahid's judicial custody till December 22.
The 42-year-old Shahid Yousuf was arrested by the NIA for terror funding.
The NIA said that the funding was being done through illegal hawala channels.
An NIA spokesman added that Shahid had given the names of overseas Hizbul Mujahideen members involved in fund-raising for the terror outfit.
He was working in the Jammu and Kashmir government's agricultural department.
The NIA said that during questioning Shahid "admitted to having received funds from cadres of the Hizbul Mujahideen on the direction of his father, Mohammed Yusuf Shah alias Syed Salahuddin, for fomenting terrorist activities in the Valley".