The NIA is a central agency established by the Indian Government to combat terror in India.
Officials from Pakistan’s high commission have been playing an active role in money being transferred by Pakistan-based outfits to facilitate terror, according to the NIA.
The NIA has said that there have been people have been arrested after being accused of having “conspired to generate funds for the terror activities to oppose the lawful government of Jammu and Kashmir”.
Tensions between India and Pakistan have raged over the last few months with India being forced to evacuate “over 36,000” people from areas along its border to escape heavy shelling.
However, Pakistan has blamed New Delhi for the atrocities that have occurred so far and insist they are interested in working with their neighbour to improve relations.
The region of Kashmir has been contested by both countries for decades causing high levels of tensions between the neighbouring states.
The Indo-Pakistani Wars of 1947 and 1965 both revolved around competing claims for the area.
The United Nations have encouraged the pair to take part in talks in a plea for the violence on the border to be de-escalated.
There are concerns that the daily skirmishes could turn into a conflict.
Last week, Pakistan Foreign Minister Khawaja Asif claimed that India must be the first to make a move if any solution is to be found to the military exchanges.
He said: “The increasing human rights violations by the Indian forces in Kashmir are a matter to grave concern.”
“India purposely escalated tensions along the borders and in first 24 days of the current year, has killed 11 civilians and injured 48 people in varying firing incidents along the borders with Pakistan.”
India has invested more money in its military over the past several months as the conflict has grown.
In December they announced plans to spend £6bilion building new fighter jets and just last week tested an inter-continental ballistic missile which has a 3000-mile range.