The National Investigation Agency on Thursday carried raids at Awantipora residence of a man arrested in April this year.
Wagay was claimed to have been arrested with Rs 29 lakh cash, by Punjab Police in Amritsar in April this year. The case was taken over by the NIA.
Subsequently, NIA claimed links between Wagay and Ranjit Singh, a notorious narco-militant, who was arrested from Sirsa area of Haryana in May this year. The NIA had registered a case in June last year and filed the first charge sheet against 15 people, including Singh, and four companies, in December the same year.
The NIA spokesman had said in the statement that an investigation into a drug case had led to the fact that Pakistan-based militant organisations were using narcotic trade to generate funds for militant activities in India.
The proceeds of narcotic trade are transferred to Kashmir through couriers and hawala channel for militancy purposes, it had said. ( GNS )