Two others were also arrested. Senior superintendent of police (SSP) Srinagar, Ashiq Bukhari, said the racket was brining in money to Kashmir for subversive activities. However,
Geelani strongly refuted the allegation.

In a statement, he said Bhat was the head of the legal cell of the Hurriyat Conference headed by him.

“He was arrested while he was buying some household items. Bhat was beaten and he got injured in police thrashing,” the hard line leader said and appealed the human rights groups to intervene.

SSP Srinagar said a joint team of Srinagar police and special cell of Delhi police arrested Bhat and two others Farooq Ahmad Dagga and Ghulam Jeelani Leelu from Srinagar.

“A car and hawala money amounting to Rs 21lakh were recovered from their possession. Earlier, Delhi Police sleuths had sought the help of Srinagar Police in this connection. The trio had been booked in a case FIR No.4 of 2011 under section 120-B, of India Penal Code and section 17 of Unlawful activities Prevention act, of Police station Special Cell-New Delhi,” he said.

Bukhari added that Bhat was earlier arrested by police in Udhampur in 2008 and Rs 55 lakh were recovered from him, which were concealed in a gas cylinder.