The centre says that stone-throwers receive funds from sources outside the country.
The National Investigation Agency has zeroed in on 13 people who are allegedly involved in financing terror or advocating separatism in Jammu and Kashmir. Legal action has been initiated against them, sources said.
"An all-out effort is being made to seize and attach properties of people promoting and financing such activities in the Valley," a senior official with the Ministry of Home Affairs told NDTV.
Among those accused of financing terror is Zahoor Ahmad Shah Watali, who is lodged at Tihar Jail. The government has now initiated steps to attach his plush bungalow at Gurugram near Delhi.
"Watali was involved in funnelling terror funds into India," a senior Enforcement Directorate officer said. "We have documents proving that he had been receiving money directly from the ISI, the Pakistan High Commission and terrorists Hafiz Saeed and Syed Salahuddin."
Investigation agencies claim that Zahoor Watali had contacts operating out of Dubai too. "He floated various shell companies for transferring money to bogus bank accounts used for channelling funds to Hurriyat leaders," a senior National Investigation Agency officer said.
According to the Enforcement Directorate officer, investigations have revealed that all the accused in question had been providing funds to terrorist groups such as the Lashkar-e-Taiba and Hizbul Mujahideen, besides separatists and stone-throwers.
Union Home Secretary Rajiv Gauba said the crackdown was part of the Narendra Modi government's "zero-tolerance policy" against terrorism. "The centre wants to curb secessionist groups (such as the All Parties Hurriyat Conference), which are a threat to the country's unity and integrity. The National Investigation Agency and the Enforcement Directorate are taking strong action against them," he added.
Sources in the Enforcement Directorate claim that investigations have identified assets valued at over Rs 7 crore as proceeds of terror-funding activities. The government believes that such funds are also used to instigate youngsters to indulge in anti-India activities, violent street protests and stone-throwing on security forces at encounter sites.