A huge amount of NRI funds come for charity- Must audit to stop terrorism

Tracking terror money trail

Ahmedabad, Monday, December 22, 2008
NDTV
Rohit Bhan

It's the oldest clue in the book, the money trail. And now an advisory from intelligence agencies wants security agencies in Gujarat to track just that -- money that funds terror in India.

Specifically, they are investigating the local contacts of a Chennai-based software and investment company.

The Gujarat anti-terror squad has told them that this company channeled hawala money into India to fund terror strikes like the Ahmedabad blasts on July 26. The anti-terrorism squad sources say:

Some religious and non-banking institutions in the state were using the company's network to collect funds for terror

They use local courier companies in Surat and Bharuch to route the money from Gulf countries

Some money was even sent to Assam to fund terror there.
An NGO is also involved. It is believed to have diverted some of its funding for the Ahmedabad multiple blasts

But why Gujarat?

Former intelligence head of Gujarat police J Mahapatra says Gujarat is the prefect gateway because a huge amount of NRI funds come in normally, as well as money meant for charity.

"There is no audit of the charity money. The primary expenditure might look genuine but a part of it which is the secondary expenditure is likely to be misused as terror fund."

Sources in the Gujarat police say that the ATS has roped in the Directorate of Revenue Intelligence to carry out a crackdown on these channels of fundings. It already got the DRI to file a case against a Surat based courier agency which it suspects was routing the money for terror acts.

Police officials believe that an effective way of preventing terror would be by blocking its funds. And this is what security agencies in Gujarat are working on.