Constable Khurshid Alam, a resident of Guthali Bagh in J-K's Ganderbal district, B Ganesh and M Senthil, both from Tamil Nadu, were arrested near Humayun Tomb here on January 19, police said.
A total of 10 Kg of heroin worth approximately Rs 35 crore has been recovered from their possession, police said.
"During police investigation, it was revealed that the kingpin of the syndicate is a Kuwait-based person named Ali, who carried out activities of this drug cartel over phone and through Internet telephony," Special Commissioner (Special Cell) S N Shrivastava told reporters here.
Ali's another trafficking module was busted in December by the Special Cell which resulted in the recovery of 47 Kgs of heroin and 2 Kgs of crack cocaine and the arrest of four persons, police said.
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Khurshid said during questioning Fayyaz alias Tanveer alias Shamsher, an Area Commander of HuM, presently based in Abottabad, Pakistan had been sending consignments of drugs through his conduits active in J-K's Uri sector, police said.
A significant portion of the proceeds of this trade was remitted to Fayyaz for furthering the activities of the terror outfit.
"During interrogation, Alam revealed that since January 2013, he has supplied around 70-80 kg heroin in Delhi and NCR," he said.
"Fayyaz is a known cadre of HuM who was active in Ganderbal area of Kashmir Valley till 2006 and thereafter, reportedly returned to Pakistan and has been since acting as a launch commander for terrorists who infiltrate into India to carry out terrorist strikes," Shrivastava said.
Questioned about how this money is sourced back to Fayyaz, Shrivastava said, "We know it, but we cannot reveal this right now.