Question : HAWALA TRANSACTIONS

(a) whether it is a fact that recently the Delhi Police has arrested two persons who were in possession of Hawala money given to them by the Deputy High Commissioner of Pakistan High Commission for funding terrorist activities in J & K and other parts of the country;

(b) if so, the details thereof;

(c) whether it is a fact that Hawala money is coming into our country through various channels;

(d) if so, the details thereof; and

(e) the concrete action taken by the Central Government to stop the Hawala transactions?

MINISTER OF STATE IN THE MINISTRY OF HOME AFFAIRS AND MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS (SHRI HARIN PATHAK)

(a)&(b): A woman activist of All Party Hurriyat Conference was recently arrested by Delhi Police and amongst other things a bag containing Rs.3.00 lakhs was recovered from her. In the course of interrogation, she disclosed that she had received the money from the Deputy High Commissioner of Pakistan based in Delhi for distributing it to militant outfits. She further disclosed that an office bearer of Kashmir Awareness Bureau had also received money from the same source for funding terrorist activities. A raid was conducted at the premises of the Bureau located near Malaviya Nagar in New Delhi and several incriminating documents were recovered. The said office bearer was also arrested and on the basis of his disclosure, Rs.2 lakhs in cash were recovered from his residence.

(c)&(d): Yes, Sir. The hawala money is received through various illegal activities like under-invoicing, over invoicing, bogus invoicing, smuggling, drug trafficking and commission from foreign contracts.

(e): The intelligence in regard to hawala operations is collected and developed on a continuing basis and those found indulging in these activities are proceeded against under the Foreign Exchange Management Act, 1999.