Srinagar, Aug 13 (IANS): The J&K Police on Wednesday busted a terror funding module from North Kashmir's Bandipore district, with the arrest of three persons, officials said.

Police said based on a tip-off, a terror funding module of proscribed terror outfit LeT was busted and three persons were arrested.

They have been identified as Irshad Ahmad Sheikh, a resident of Chittibandy Aragam, Mohammad Junaid Wani, a resident of Nageen Bagh Sopore, and Raj Mohammad Khan, a resident of Lolab Kupwara.

The police said incriminating materials including cash worth Rs 4 lakh have been recovered from their possession.

"As per investigations, the trio were in touch with their handlers in PoK and had received Rs 14 lakh out of which Rs 90 lakh have been distributed by them for financing terror activities in district Bandipora and Kupwara," the police said.

"The said terror module was activated for carrying out terrorist activities in district Bandipora and Kupwara."

The police have filed an FIR and started probing the matter.