The importance of setting up a terror funding, fake currency cell in the NIA

New Delhi, Dec 08: The Parliament was informed by the Union Home Ministry that a Terror Funding and Fake Currency cell has been constituted in the National Investigation Agency.

Minister of State for Home Nityananda Rai said that the cells were formed to conduct a focused investigation into terror funding and fake currency cases. "The Unlawful Activities (Prevention) Act, 1967, has been strengthened by criminalizing the production or smuggling or circulation of high-quality Counterfeit Indian currency as a terrorist act and enlarging the scope of proceeds of terrorism to include any property intended to be used for terrorism," Rai also said.

The two wings are extremely important to conduct a focused probe as both terror funding and fake currency are not only interlinked, but also are the backbone for terrorists and their organisations.

The NIA has over the years busted several cases relating to terror funding being carried out by many businessmen and NGOs. It has also filed a plethora of cases especially in West Bengal, when it comes to the fake currency racket.

In the year 2019 several cases were filed by the NIA in Jammu and Kashmir with regard to terror funding.

Some of the key findings of the probe have been the route and source of the funds. Investigation revealed that Zahoor Ahamad Shah Watali is one of the main hawala conduit who used to generate and receive funds from Pakistan, ISI, UAE and had floated various shell companies to disguise foreign remittances for further transfer to separatist leaders and stone pelters in the valley. These funds were used to fuel unrest in the Kashmir valley and organise violent agitations and anti-India activities which resulted in large scale violence leading to numerous injuries and deaths of civilians and security forces.

The NIA also arrested Yasin Malik, leader of proscribed organisation JKLF, Asiya Andrabi leader of proscribed organisation Duktaran-e-Milat, Separatist leader Shabir Shah of JKDFP and Masrat Alam of Muslim League.

Malik admitted that funds were collected from the business community. Andrabi too admitted that she had been collecting funds and donations by organising protests. The NIA also found that there were several remittances into her account from Watali.

Another major source of funding for terror groups is fake currency. In this context the focus would shift to Malda, the hub of the racket. The NIA during its probe found that several crores of Rupees being generated through this racket were being diverted for terror related activities. It found that the fake currency was trafficked through a complex network spread in India, Nepal and Bangladesh.

The NIA is conducting several probes relating to this racket and has arrested scores of racketeers from Malda alone. In one of its probes against the Jamat-ul-Mujahideen, Bangladesh, the NIA learnt that the members of the Malda module had set shop in the southern states of Karnataka and Kerala. They were circulating fake currency and using it for terror related activities.