The Enforcement Directorate on Sunday arrested Aslam Wani, close aide of Separatist leader Shabir Shah from Srinagar, in connection with terror funding case.
Wani will be brought to Delhi today.
Earlier, the ED remand of Shabir Shah, a Democratic Freedom Party (DFP) chairman, was extended for six days.
This came after the Enforcement Directorate submitted an application before a Delhi court for further remand of Shah.
In its remand application, the ED submitted before the court that Shah is in continuous contact with anti national elements/ terrorists residing in Pakistan in garb of the Kashmir issue.
On July 26, Shah was produced in the Patiala House Court, following which he was sent to a seven-day ED custody.
On July 25, Shah was arrested from his residence, where he was under house detention for a very long time, in Jammu and Kashmir's Srinagar.
The National Investigation Agency (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.