Accused Talib Lali, a suspected associate of Hizbul chief Syed Salahuddin, was produced before Additional Sessions Judge Dharmesh Sharma upon expiry of his police remand with National Investigation Agency (NIA) saying he was not required for further custodial interrogation.
The court, after hearing NIA's submission, remanded Lali in judicial custody till October 23.
NIA had earlier sought Lali's custody saying they needed to quiz him regarding distribution of funds received from Pakistan-occupied Kashmir (PoK) for terror attacks in India.
The court had earlier issued a non-bailable warrant against Salahuddin.
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Ali was arrested in connection with the case in the court itself and NIA had said his name had cropped up during the interrogation of one of the arrested accused, Dawood, who is currently in jail under judicial custody.
The agency had said that funds were received from abroad, especially from PoK, for financing Hizbul cadre in perpetrating terrorist acts in India.