Delhi police have arrested Nasir Ahmed, a close associate of Hurriyat chairman Mirwaiz Umer Farooq on charges of funding separatist organisations in Jammu and Kashmir, police sources said on Saturday.

Nasir was picked up, along with two prominent Kashmiri businessmen, from a posh south Delhi locality on Friday. He was placed under arrest after the government screened his past links with separatist organisations, they said, adding that the others were released but would be called again for interrogation.

One of the businessmen is a prominent wholesaler of insecticides and pesticides.

Nasir, alleged to be a hawala operator, is understood to have come to Delhi earlier, too, and conducted meetings with Kashmiri separatist leaders.

Two kg RDX, a detonator and a timer were recovered from Nasir, police said.