The property, belonging to Abdul Razaq Lone and his son Abdul Hamid Lone, was seized yesterday by an investigating officer in the presence of revenue authorities, a police spokesman said.
The seized property includes nearly two acres of land at eight different locations including apple orchards, a house and a car.
It has been found in the investigation that Abdul Majeed Lone, brother of the accused Abdul Hamid, is a member of the militant group Hizbul Mujahideen, the spokesman said.
He said Abdul Majeed had asked his brother Abdul Hamid to transfer the value share of his land property to him through militant channels.
Abdul Hamid has already handed over an amount of Rs three lakh as an instalment of the value share of the property of his militant brother to the militants of Lashkar-e-Toiba operating in Sopore area, the spokesman said.
Police yesterday also sealed the house belonging to the wife of hardline Hurriyat Conference leader Ghulam Mohammad Khan alias Khan Sopori in the city here.