The National Investigation Agency is investigating if proceeds from trade across the Line of Control between Jammu and Kashmir and Pakistan-occupied Kashmir are being “used” to finance terrorist activities in the Valley.
Last week, the NIA registered a case under Section 17 — punishment for raising funds to indulge in terrorist acts — of the Unlawful Activities Prevention Act against unknown persons on the basis of “secret information”.
A senior NIA official told The Hindu the agency had credible information that fraudulent transactions coming to Rs. 2,100 crore at the Salamabad-Uri trade point and Rs. 670 crore at the Chakan Da Bagh-Poonch point since cross-LoC trade began in 2008.
The official claimed that a major portion of these proceeds were diverted to fund terrorist activities in the valley. Cross-LoC trade, a confidence-building measure between India and Pakistan, and takes place four times a week through the Uri-Muzaffarabad and Poonch-Rawalakote routes. The trade has so far touched approximately Rs. 3,500 crore, with the Indian side exporting goods estimated at around Rs. 1,900 crore while receiving goods for Rs. 1,600 crore from Pakistan. As of now, there are around 300-odd traders registered for the trade, down from close to 600 in 2008.
“We have collected 20 sacks of documents from the trade facilitation points at Uri and Poonch. We are analysing the records. There is a huge over-valuation of products that come from Pakistan,” the official said.
