2/13/2008: Intel News Brief: Fake Currency funds Terror:

Combating terror tops the priority list of security agencies in India.
Even as cops bust new terror networks and crack cases, a key question
that remains unanswered is who funds these terror operations and how
is it done?

Although there are various versions, it has now become clear that a
major fake currency racket operates in the country and this money is
being used to fund terror operations in the State.

Security agencies have no qualms about claiming that Dawood Ibrahim,
the fugitive don settled in Pakistan, is the man behind the racket. It
is said that he operates a huge network in both India and Nepal. Most
of the money made through this racket is used to operate terror
operations, the IB adds.

Fake Indian currency is made in Pakistan and later brought into India
through either Nepal or Bangladesh, the same route that militants use
to get into India. It is compulsory for each militant to carry the
notes into India when they are sent in for a mission.