Aziz, an executive member of All Parties Hurriyat Conference (APHC) was caught by police with Rs 100,000 (2,286 dollars) of fake Indian currency and 94,000 worth of valid United Arab Emirates Dirhams, a police officer said. "Secret intelligence was received that a leader of Jammu Kashmir People's League who arrived in Delhi from occupied Srinagar would come to the Pakistan High Commission and collect fake currency notes for circulation in occupied Jammu and Kashmir," he told Reuters.
Aziz is a member of the Jammu Kashmir People's League, a constituent of the Hurriyat, which has spearheaded the political struggle in Indian occupied Kashmir against New Delhi's rule.
He was intercepted as he left the Pakistan High Commission in New Delhi's diplomatic enclave in a car, police said.
An official of the Pakistan High Commission said the Indian police action looked "ridiculous" and "preposterous" especially in the context of the current peace process.
Police said Aziz received arms training in Pakistan in the early 1990s. The Hurriyat Conference slammed his arrest. "This is the double-faced policy of the Indian government. On one hand, they talk of negotiations but on the other, they arrest political persons," Syed Ali Shah Geelani, the chairman of the hard line faction of the Hurriyat, said in a statement.
In the latest violence, suspected mujahideen set off a bomb near a market in Poonch town, north of Jammu, winter capital of Indian occupied Kashmir. Four people were wounded, police said.