by Harish Gupta, National Editor, Lokmat Group
Banning “Barter Trade” with PaK: PMO to decide
NIA says Barter-trade generated Rs 1000 crore terror funding
Harish Gupta
New Delhi, Sep 11
The Prime Minister's Office (PMO) will take a final call on banning the “Barter Trade” between India & Pakistan which was aimed at promoting trade & harmony between the people in J & K and PoK.
Highly placed sources in the government say that the PMO is seized of the matter after the National Investigation Agency (NIA) strongly recommended the closure of the barter trade. The NIA had sent its report to the Ministry of Home Affairs (MHA) which is turn has referred the issue to the PMO as it has wider implications.
Incidentally, it was the Union Home Ministry which had initiated the Barter-Trade agreement with Pakistan in 2008 at the bidding of the then Prime Minister Manmohan Singh within days of returning to India from his US trip in 2008 to promote harmony between the people on both sides of Jammu & Kashmir. It was decided that no cash will be involved, only 21 items will be trade for mutual exchange and the value of items will be fixed by traders mutually. The goods should be produced in J & K and PoK only. But what happened thereafter, was an eye-opener to agencies. For example the Californian Almonds made their way from Pakistan to J&K on the ground that these were produced in PoK.
Lokmat was first to break the story “Barter Trade or Terror Funding” on January 23 this year in its editions saying the NIA had undertaken countrywide raids and scrutinizing records of 350 traders in Delhi & J & K. At that time, the NIA estimated that the hawala racket could be of the order of Rs 300 crores. Top sources have now told Lokmat that the hawala scam could be of the order of Rs 1000 crores.
The NIA submitted detailed report listing how hundreds of cores of rupees reached terrorist groups and stone pelters in the Valley thanks to the “Barter-Trade” route. The NIA said the barter-trade generated more than Rs 3000 crores in cash and at least Rs 1000 crores of this amount had gone to the kashmiri militants and their patterns which included Hurriyat leaders. The NIA submitted a detailed account of money-trail beginning with traders on the borders to traders in Delhi and major cities and how money re-routed to Hurriyat leaders and Kashmiri militants. The NIA also gave detailed account of how bank channels were used for over-invoicing and under-invoicing and went on unchecked for nearly eight years.
It said that terror funding by LeT, JeM and other outfits and the alleged transfer of cross-LoC trade proceeds are "interlinked". It gave clinching evidence to the MHA how large amount exchanged through import and export of goods has been ultimately used to foment "civil unrest" in Kashmir. The NIA suspects that some traders even provide trucks to hide arms and ammunition smuggled from Pakistan.
It is learnt that Union Home Minister Rajnath Singh who undertook 4-day visit to J & K discussed this issue with the state Chief Minister Mehbooba Mufti also as she had urged the Prime Minister that Barter-Trade agreement should not be scrapped.
Ends
