"On whether anti-national or international forces are supporting Maoists, we have no evidence of any covert support to them. There was one unconfirmed report about a contact between a Nepalese organisation and Maoists," he said. Chidambaram, however, said the government was keeping a watch and would take action with the help of friendly countries if such reports are confirmed. He said Maoists are generating funds internally through extortion and by looting banks. They are also smuggling arms through borders along Bangladesh and Myanmar. "But, there is no proof of Maoists getting money from international agencies," he said.
To a supplementary that Maoists carry out money laundering and even Interpol and audit firm KPMG have given estimates that it
has reached large proportions, Chidambaram said though the issue of money laundering is dealt with by the finance ministry, "these estimates are exaggerated. I don't believe." To another query, he said circulation of fake currency is a separate issue and not only the Indian rupee, but all major currencies of the world are facing this problem. "We have caught consignments of fake currencies on various occasions."
The home minister said there is a mechanism to monitor use of money under the Foreign Contribution (Regulation) Act 1976. "No banned organisation or their front organisations are given permission to receive foreign contribution under the Act. Central intelligence and security agencies work in close cooperation with their counterparts in states to gather information regarding this matter," he said. He informed the House that the Act is proposed to be replaced by a new one which will incorporate provisions for greater transparency and accountability. The regulatory mechanism would also get further strengthened, he said. The minister said government has taken action in 100 cases where the Act was violated.