He demanded "a thorough inquiry" into the matter, saying there was an attempt to vilify all mainstream political parties in Kashmir.
"I believe these accusations cannot be dismissed off-hand, they require further investigation", Omar said.
Gen Singh Tuesday said army was funding ministers in the state "since (India's) independence" to maintain peace in the Kashmir Valley.
The ruling National Conference (NC) challenged Singh to reveal the names of the ministers he believed received the army's secret funds failing which NC would file a defamation suit against him.
Separatists have been using the allegations to up their ante against the mainstream political leaders alleging these people represented the democratic face of India's occupation of Kashmir.
