Excelsior Correspondent
JAMMU, Nov 29: The Intelligence agencies of the Government of India have put all financial institutions including banks in both Government and private sectors on high alert following reports that dreaded militant outfits like Lashkar-e-Toiba (LeT) and Hizbul Mujahideen (HM) have generated funds worth several crores from within the country and abroad to step-up militancy in India especially Jammu and Kashmir.
Official sources told the Excelsior that reports available with the Intelligence agencies on the basis of investigations conducted by financial wings revealed that the two militant outfits, which were being run through ‘remote control’ from Pakistan and were instrumental in inflicting several casualties of security forces and civilians, had received funds from abroad running into several crores and used them for funding militancy and financing families of both working and slain terrorists.
“The Intelligence agencies have asked all financial institutions including banks in Government and private sector to keep strict surveillance on major transactions coming from abroad not only in Jammu and Kashmir but other States also as there had been reports that some organizations (from abroad) instead of directly routing the money to J&K were getting it transferred from other States to avoid any doubts,’’ sources said.
Reports revealed that the two militant outfits had specifically received funds from various Gulf nations and Pakistan apart from some other countries. However, majority of funds had come from Gulf and Pakistan. Some of the funds had also been received from a couple of States within the country.
There had been reports that the money had been distributed by both the outfits among their cadre including militants, their families, kin of slain militants and Over Ground Workers (OGWs) to sustain the militancy, which had suffered major reverses over the past few years.
“The militants, facing defeat at hands of security forces, had used new route of luring their cadre with the help of money power. Pakistan and several Gulf countries were used to fetch the money to keep the militancy going,’’ sources said, adding that some of the financial transactions had been detected but by then they had been cashed by conduits of the outfits using fictitious names on the bank accounts.
Apart from financial institutions, reports revealed, a large part of funds for the militants have also been generated through hawala sources and cross-LoC trade along Uri-Muzaffarabad route.
“While hawala was known source for funding militancy worldwide, the cross-LoC trade has also been used for providing funds to the militants with the connivance of some traders,’’ sources said, adding that barter system of trade was biggest lacunae, which had been exploited by Pakistan and the militants.
However, after initial reports surfaced about misuse of barter trade along cross-LoC route for funding the militancy, security agencies have succeeded in choking this channel of funds generation by the militants while other resources continued as it was not possible for the financial institutions to check each and every financial transaction and block hawala channels, sources said.
But with fresh set of instructions to the financial institutions by the Union Finance and Home Ministries, they have been directed to scrutinize to maximum possible extent the financial transactions that could benefit the militants and their financiers and upper ground workers.
Reports with financial regulating agencies revealed that nearly Rs 100 crores have reached the hands of LeT and Hizbul Mujahideen in different parts of the country, mainly Jammu and Kashmir over the past years. The Hizbul Mujahideen was major beneficiary of the funds.
Sources admitted that choking of funds to the militants had become necessary to prevent spread of militancy as it has been witnessed that militants had, in many cases, lured youth into militancy by giving them money and promising their families a lavish life.
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