The Jammu and Kashmir police on Friday raided All-Party Hurriyat Conference leader Anjum Zamruda Habib's residence in Anantnag and office at Rajbagh even as the amalgam denied that it was taking money from Pakistan for terrorist activities in the state.

The police said the raids had produced 'incriminating documents'.

Habib, chairperson of Muslim Khawateen Markaz -- a constituent of the Hurriyat -- was arrested in New Delhi on Thursday for allegedly receiving funds from the Deputy High Commissioner of Pakistan to India, Jaleel Abbas Jeelani.

The Hurriyat, however, denied the allegations.

Hurriyat chairman Abdul Gani Bhat, however, said, "We have nothing to do with it... One should not pay any attention towards such talks."

He said that the money came from the people of Kashmir, 'who give their blood for the cause'.

"We don't know whether money comes from Pakistan or not. You should ask those people who have been arrested about this," he said.

Bhat said that his organisation was contemplating shutting down its office in Delhi following the arrest of its office bearers and added that a decision in this regard would be taken shortly.