Busting a racket of funding of separatist activities in Jammu and Kashmir, the Delhi police arrested two Hurriyat leaders, including its Delhi-based spokesperson, for allegedly receiving funds from the Pakistan high commission for passing on to militant outfits in the state.

Acting on specific intelligence input, the Delhi police tailed a woman identified as Anjum Zamrooda Habib after she came out from the Pakistani high commission in Delhi.

She was intercepted near Nehru Park locality. A search revealed that she was carrying Rs 307,000, Joint Commissioner of Police (Special Cell) Neeraj Kumar told reporters.

He said Habib is a leader of the Muslim Khawateen Markaz, a constituent of the separatist Hurriyat Conference.

During interrogation, she claimed to have received the money from Pakistan's Deputy High Commissioner Jaleel Abbas Gilani and said she was referred to him by Hurriyat chairman Abdul Gani Bhat and Hurriyat spokesman Shabir Ahmed Dar.

She revealed that Dar was also frequenting the Pakistani high commission for receiving money for a militant outfit, Kumar said.

Thus followed a raid on the Hurriyat office in Delhi in which police recovered Rs 200,000 besides some documents and propaganda material, he said.

Dar was also arrested and the duo has been booked under POTA. They would be produced before a magistrate on Friday, Kumar said.

Last year, the Jammu and Kashmir police had arrested three persons on the Jammu-Srinagar National Highway along with $100,000, allegedly meant for JKLF leader Yaseen Malik.

Malik, who was arrested by the police under POTA, is at present out on bail.

In the second operation last year, police arrested senior Hurriyat leader Syed Ali Shah Geelani on charges of funding the militant outfit Hizbul Mujahideen.

Geelani is in custody and at present in Mumbai undergoing treatment.