Irshad Ahmed Bani and Faiyyaz Butt, both garment traders, were detained from a house near Neelam Talkies by the local police, Deputy Inspector General of Police, Munger Range, Anil Kishore Yadav said.
The Jammu and Kashmir police had tipped off the local police that they had the name of HM terrorist Faiyyaz Saphab listed in their phone books, the DIG said.
Saphab had visited the district in the guise of a garment trader to supply Foreign Indian Counterfeit Notes (FICN) and foreign arms after routing them through Bangladesh, Yadav said.
Bani and Butt from Astkam village in Anantnag district of Jammu and Kashmir admitted they knew the terrorist but denied that they were part of his terror network, the senior police official said.
The Kashmiri youths were subsequently released, he said.
The whereabouts of the HM ultra were being investigated, he added.
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