The arrested persons were Ghulam Nabi Lone alias Prince and Umar Mushtaq Mir, both residents of Langate area of the Kupwara district and Ishfaq Ahmad Parray, a resident of Mandigam, a police spokesman said.
He said they were the overground workers operating in Handwara since April last year.
"They were planning to do something big in Handwara," the spokesman said, while claiming that the three were close associates of a top commander of JeM and were providing logistic support to the militants of the outfit.
He said that with the busting of this overground module, "a big threat to the political workers and peace loving people was averted" in Handwara in north Kashmir.