Mirwaiz Umer Farooq was placed under house arrest in his uptown Nigeen residence where pro-independence Jammu and Kashmir Liberation Front chairman Yaseen Malik is also detained.
Heavy deployment of police and central reserve police force can be seen in Srinagar.
Seven injured in clashes
Meanwhile, seven people were injured in a clash between security forces and protesters in Indian-held Kashmir.
Sopore town has been under curfew since Friday after two protestors died when soldiers opened fire on them.
Authorities are taking measures to thwart the proposed protest march to Sopore town where one person was killed in firing on Sunday.
Authorities have said schools and colleges in the valley will remain shut for two days.
Monday's clashes erupted when mourners tried to march through the streets carrying the man's body.
Police said security forces fired shots in the air and tear gas to disperse the protesters.
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