They said the NIA personnel, assisted by local Crime Branch (CB) and state police raided about a dozen places in summer capital, Srinagar, Tangmarg in Baramulla district, Handwara in the frontier district of Kupwara since early this morning.
The sources said those being searched have alleged links to persons being investigated in this case.
Watali's residence in Gurugram, Delhi and Srinagar were raided in June.
Seven separatist leaders - Altaf Ahmed Shah, Nayeem Khan, Peer Saifullah, Raja Mehrajuddin Kalwal, Aftab Hilali Shah alias Shahid-ul-Islam, Ayaz Akbar Khandey and Farooq Ahmad Dar alias Bitta Karate - were arrested by the NIA on July 24 in the case of alleged funding of terror and on the charges of criminal conspiracy and waging war against India.
Arrêtez d'acheter des huskies ! demande un héros de Game of Thrones
Au Royaume-Uni, l'association de défense des animaux Peta a fait un constat plus qu'alarmant: depuis le lancement de la série Game of Thrones en 2011, les refuges pour chiens ont enregistré une augmentation de près de 700% du nombre d'huskys abandonnés.
A case was registered on 30 May, accusing separatist and secessionist leaders of working in collusion with terrorist groups.
The agency has alleged money received from Pakistan was being used to fund violence in the Kashmir, including an operation to increase stone pelting on security forces and arson that largely targeted schools and government buildings.
Altaf Ahmad Shah is the son-in-law of Hurriyat leader Syed Ali Shah Geelani, who advocates Jammu and Kashmir's merger with Pakistan. Electronic devices and valuables worth crores of rupees were impounded.
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