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Money for terror operations is raised through smuggling of arms, fake currency, abductions, investment in the stock exchange and real estate.
The outfits, according to the IB dossier, that have been raising funds for the ISI include Jaish-e-Mohammad, Lashkar-e-Tayiba, the Benevolence International Organisation, Bin Laden Front, Al Fuzaira, Khairul Ansar Al Khairia, Daulatatul Kuwait, Revival of Islamic Heritage Society and Doulatatul Bahrain.
The IB says that over the years funding through smuggling of arms and drugs has come down relatively thanks to increased vigil along the borders. Take, for example, the case of fugitive Indian gangster Dawood Ibrahim [Images].
The IB says the understanding reached between Ibrahim and the ISI was that he would be allowed to carry out smuggling operations out of Pakistan provided a part of the income was handed over for terror operations.
However, smuggling of arms and drugs is not hot in the terror circles. The ISI wants to give a more legal face to funding and hence has directed the outfits depending on it to invest in the stock market and real estate.
Lately, there has been a sudden increase in the circulation of fake currency in India. Various outfits like the Students Islamic Movement of India and the Harkat-ul-Jihadi have been using the money generated through the circulation of fake currency for terror-based operations.
How the ISI operates in India
The operation of the ISI in India has been classified into six categories:
The ISI methodology has been classified thus:
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