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Malik was produced before special judge Rakesh Syal where the National Investigation Agency arrested him inside the courtroom and sought 15-day custodial interrogation.
The proceedings in the case were heard in-camera.
He was shifted to Delhi’s Tihar Jail on Tuesday after the NIA secured his production remand in connection with the terror funding case.
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The Jammu and Kashmir High Court has reserved its judgment on a plea of the CBI for reopening three-decade-old cases in which Malik was an accused.
The Jammu Kashmir Liberation Front (JKLF) chief is facing charges of kidnapping and murder for being allegedly involved in abducting Rubaiya Sayeed, daughter of then Union Home Minister Mufti Mohammad Sayeed in 1989, and killing of four Indian Air Force personnel in the early part of 1990.
NIA had approached a special court in Jammu, seeking Malik’s remand for custodial interrogation in the terror-funding case.
The NIA probe seeks to identify the chain of players behind the financing of terrorist activities, pelting of stones on security forces, burning down of schools and damaging of government establishments.
The case also names Hafiz Saeed, the Pakistan-based chief of Jamaat-ud-Dawah, the front for the banned Lashker-e-Taiba, as an accused.
Besides, it names organisations such as Hurriyat Conference factions led by Syed Ali Shah Geelani and Mirwaiz Umar Farooq, the Hizbul Mujahideen and the Dukhtaran-e-Millat.
The JKLF was recently banned under the Unlawful Activities (Prevention) Act.