A foreign office statement in Islamabad said Mr Geelani's arrest reflected the Indian Government's utter disregard for the fundamental rights of Kashmiris.

Mr Geelani was arrested on Sunday under controversial anti-terrorism legislation passed by the Indian parliament in March.

He is accused of receiving money from Pakistan to fund Kashmiri militant activities.

The arrest followed a police raid on Mr Geelani's home.

Funding militants

Indian police say they were acting on information that Mr Geelani had received tens of thousands of US dollars from Pakistani intelligence services.

The money, allegedly routed through a contact in the UK, was intended to finance militant groups in Indian Kashmir, according to the police.

Police say they recovered the equivalent of more than $30,000.

Mr Geelani is a key figure in the Kashmiri separatist movement - an executive and former chairman of the multi-party pro-separatist alliance, the Hurriyat Conference.

He is seen as a hardliner and pro-Pakistan.

The Hurriyat Conference said Mr Geelani's arrest would harm international efforts to ease current tensions between India and Pakistan.

'Pretext'

Mr Geelani was flown out of Kashmir to Ranchi in eastern Jharkhand state pending court proceedings.

Critics of the Indian government say the seizure of the funds was an excuse for the authorities to crack down on a separatist leader with close links to Pakistan.

That is a charge dismissed as far-fetched by Indian police.

The arrest comes as hopes are growing of a breakthrough in the current stand-off between India and Pakistan.

India's allegations that Pakistan gives practical support to militants operating in Indian Kashmir is a central part of the long-running and dangerous dispute.