Lok Sabha Question No. 3853 (UNSTARRED), answered on 2015-12-22
Subject: Terrorist Funding
Ministry: HOME AFFAIRS
Asked by: RAYAPATI SAMBASIVA RAO, SUMEDHANAND SARASWATI, SANTOSH AHLAWAT

## GOVERNMENT OF INDIA MINISTRY OF HOME AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 3853

TO BE ANSWERED ON THE 22 ND  DECEMBER, 2015/PAUSHA 1, 1937 (SAKA)

## TERRORIST FUNDING

3853.

SHRI RAYAPATI SAMBASIVA RAO: SHRI SUMEDHANAND SARSWATI: SHRIMATI SANTOSH AHLAWAT:

Will the Minister of HOME AFFAIRS be pleased to state:

(a)  whether  any  specific  measures  have  been  undertaken  to  know  the terror links across the country in terms of flow of funds from various chit fund companies;

(b) if so, the details thereof along with the number of persons arrested in this regard and action taken against them;

(c) whether the Intelligence Agencies have informed the Financial Action Task Force (FATF) in Paris that Hizb-ul- Mujahiddeen (HM) receiving funds in Pakistan from different channels, raised over 80 crore in the last eight years to carry out terror activities in India;

(d) if so, the details thereof and the reaction of the Government thereto;

(e) whether the FATF report said that the banking sector was extensively used  for  transfer  of  funds  to  various  accounts  for  Hizb-ul-Mujahiddeen (HM) activities in India; and

(f) if so, the details thereof and the reaction of the Government thereto?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF HOME AFFAIRS (SHRI HARIBHAI PARATHIBHAI CHAUDHARY)

(a): There is no information with the Government about flow of funds from chit fund companies to terror outfits.

(b):  Does not arise.

(c)  to  (f):  A  terror  funding  case  was  investigated  by  the  National Investigation  Agency(NIA),  which  disclosed  that  the  Hizb-ul-Mujahideen (HM),  led  by  its  self-styled  commander  Syed   Salahuddin  has  been receiving  funds  originating from  Pakistan through  different  mediums.  In this  case,  approximately  Rs.  80  crores  was  channelised  into  India  to support terrorist activities during the past eight years. The investigation by  the  NIA  has  also  disclosed  that     Jammu   Kashmir  Affectees  Relief Trust (JKART), a front organization of the Hizb-ul-Mujahideen(HM), with its Head Office at Rawalpindi and Branch Offices in Islamabad and Muzaffrabad,  is actively involved  in raising  and  collecting  funds in Pakistan and transferring it  to  India  for  its  distribution  to  active  cadres and other beneficiaries of the terrorist organization. In this case, banking channels were used for transfer of funds to various bank accounts.  During the investigation, complicity of 12 accused persons has come on record. Four persons have been arrested in this connection and 8 accused  are  absconding.  The  NIA  has  filed  charge  sheet  against  10 accused persons on 30.11.2013 in the NIA Special Court, Patiala House, New  Delhi.  In  this  regard,  a  Letter  Rogatory/Letter  of  Request  under Section 166-A of Code of Criminal Procedure, 1973 has been sent by the NIA to Pakistan to collect further evidence in the case. The details of this case  have  found  mention  in  the  FATF  Report  on  'Emerging  Terrorist Financing Risk', published in October, 2015.

*****