Police on Wednesday night arrested Hurriyat Conference leader Mohammed Nayeem Khan in Srinagar and recovered Rs 900,000 from him.
Khan, president of the National Front, was picked up at Hyderpora on the Airport Road, official sources said.
Khan was interrogated by senior police officials who wanted to know the source of the money recovered from him, they said.
The arrest comes just a day before his party's convention.
