Vikash Gupta asked: How is the money raised or what is the source of funding for Hurriyat and separatist groups in Kashmir?

Vivek Chadha replies: There are a number of sources of finance for the Hurriyat and terrorist groups in Kashmir. Most of the sources emanate from across the border in Pakistan or controlled by Pakistan through West Asia. The sources of finance include narco-financing which comes from the control of narcotics trade in the AfPak region. It also emanates from donations both within Pakistan and West Asia. This is either from charities openly involved in collection like the JuD and others which use charities as fronts to collect money. A percentage of infusion of money comes through counterfeit currency. Criminal activities and legitimate businesses are also being operated to generate money for separatists.

This collection is routed through a number of means. It comes through physical smuggling of currency. It is also routed through hawala which has emerged as the largest network for pumping money in India. Trade based induction of money is also on the increase. And lastly, legitimate banking channels are employed to send money in small quantities in order to avoid suspicion.