In a major setback to the India-Pakistan cross LoC trade at a time when the relations between the two countries are already at nadir, the government has ordered the National Investigation Agency to launch a probe into the alleged violation of norms and diversion of funds from the LoC trade which are being used for fomenting terrorism and separatism in the state of Jammu and Kashmir. The hawala route being used by Pakistan at the trade points has set the alarm bells ringing in the government which will now reopen the proposals gathering dust for years to revamp the barter system between India and Pakistan started in 2008.
The trade at the twin LoC trade facilitation centres under scanner is a staggering Rs 2,100 crore at Salamabad and Rs 670 crore at Chakkan-da-Bagh, sources disclosed .
"Reliable information was received by the Central Government that a large scale transfer of funds from Pakistan to India has been taking place, through the import of California Almonds (badam giri) via the Cross-LoC trade mechanism through the Trade Facilitation Centres (TFCs) located at Salamabad, Uri, District Baramulla and Chakkan-da-Bagh, District Poonch," said an NIA official. Sources in the NIA said over evaluation of goods and items was happening and in some cases the amount of trade was so high that it even crossed the actual amount of item produced in Pakistan during that period. The NIA has seized stacks of documents from the trade facilitation centres which will be examined carefully by the government.
"This is in gross violation of the State policy of prohibition on trade in ‘third-party origin goods’ through this mechanism, and Information indicated that these funds are being used for fomenting terrorism and separatism in the state of Jammu and Kashmir," the official said.
Since the matter pertains to national security, the home ministry has said that the offence involved is of raising funds for terrorist acts, which is punishable under section 17 of the Unlawful Activities (Prevention) Act, 1967, a scheduled offence under the NIA Act, 2008.
"The Central Government has issued orders under section 6(5) of the NIA Act, 2008, directing the National Investigation Agency, to take up the investigation," said a statement issued by the NIA. Accordingly, the NIA Police Station at New Delhi has registered a case under the Unlawful Activities Prevention Act, 1967, and an FIR has been presented before the NIA Special Court at Jammu.
Investigation teams of the NIA have already fanned out and conducted searches and seized several incriminating documents, at several places connected with the crime, in Jammu and Kashmir, since the registration of the case. Investigation into the case was continuing, said the NIA.
Incidentally, there have been multiple intelligence reports warning of hawala route being used in the garb of cross border trade to foment terror in the valley. India's proposal to set up a banking facility for cross LoC trade hit a wall after Islamabad refused the same. The MHA then moved towards installing full body scanners and tight security measures on the trade route but sources disclose that these scanners are either not working or not effective and the trade is largely going on unchecked and unmonitored for sometime.
