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Multi-million scam funding militants unearthed in J&K

Jammu and Kashmir police has uncovered a transnational, network of money launderers that is financing militancy in the state.

Director General of Jammu and Kashmir police Gurbachan Jagat said this network was a part of a large international intrigue to maintain tension in the state. Jagat said the magnitude of the scam could be seen from the fact that just one of the many funding channels operated by anti-national elements had brought in Rs 17.2 million since 1995. Three persons have already been arrested in this regard.

He said the persons involved were bringing in money, ostensibly for philanthropic purposes, and diverting it to the militants.

''We were receiving information that funds were being sent to militant organisations through the international hawala channels..." A close watch is being maintained on activities of a few businessmen and some non-government organisations in Srinagar, he said.

The police chief said that on Sunday, acting on specific information, the police had arrested Abdul Gaffar Sofi, a resident of Barzulla.

Jagat said Abdul Gaffar Sofi, an advocate and active Jamait-e-Islami worker, had established a Kashmir Medicare Trust in 1991 to bring in foreign contributions.

Sofi became its principal trustee along with one Dr Saifullah and a carpet dealer, Mohammad Shafi Mir. The initial amount for establishing the trust came from Saudi Arabia, allegedly routed through that country by Pakistan's Inter-Services Intelligence.

Sofi was later made chairman of the Muslim Welfare Society with an office at Gardarden in Srinagar city. The police chief said Sofi often went abroad and brought in foreign contributions from Saudi Arabia, Singapore, Dubai and Kuwait.

According to documentary evidence available and confessions made by three arrested persons, the funds came in from Ghulam Nabi Fai of the Kashmir American Council, Ayub Thakur of the Kashmir Freedom Movement (based outside the country), through smuggling of gold and currency, direct and indirect payment by the ISI, and two other persons, Ghulam Nabi Nowsheri and Mohammad Yousuf Shah.

Jagat said the money from Dubai went through regular channels to Delhi where the money was being paid to business houses as an advance. The Delhi businessmen later supplied goods free of cost to Srinagar businessmen who sold the goods and handed over proceeds to Mir, the carpet dealer.

The money finally found its way through Sofi to one Ghulam Mohammad Khan, a leader of the outlawed Hizbul Mujahideen in north Kashmir.

Though the Jamait-e-Islami ostensibly runs non-government organisations like the MWS to help the destitute, orphans and provide children gain an education, it actually is used to transfer clandestine and illegal foreign contributions to militants, Jagat said.

According to the police chief, Sofi received Rs 500,000 in 1995, about Rs 930,000 in 1996 and Rs 520,000 in the last three months of 1997.

The police chief said Mir had confessed that he and his son has received four per cent of the funds transferred as commission.

A large number of computer hard disks, floppies and incriminating records have been seized from the premises of the KMT, the MWS and the Muslim Medicare Trust run by Sofi.

Action against businessmen in Delhi and Srinagar has also been initiated, Jagat said.

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