Traders involved in the cross-Line of Control (LoC) trade were allegedly involved in funding terror groups active in different parts of Jammu and Kashmir. Not only the cross-LoC traders were involved in funding terror outfits but they were also smuggling arms and pumping fake currency in the name of trade.
While filing a chargesheet against the three accused, the National Investigation Agency (NIA) pointed out that the cross-LoC trade was used for terror funding.
The accused — Tanveer Ahmad Wani of Pulwama, and Peer Arshad Iqbal and Bashir Ahmad Sofi of Baramulla — were charge-sheeted in a special court under various sections of the Indian Penal Code and the Unlawful Activities (Prevention) Act.
The accused persons were charge-sheeted pertaining to the case registered on December 16, 2016, for profiteering and generation of funds through cross-LoC trade between J&K and Pakistan-occupied Jammu and Kashmir (PoJK) and using of those funds for the promotion of terrorist activities in J&K.
"After scrutinizing several documents, it has come to notice that extraordinary profits were generated by excess import and under-invoicing of imported almonds by the traders. It has also been found that some of the cross-LoC traders of PoK are crossed-over terrorists and were backed by terrorist outfit, Hizb-Ul-Muzahideen (HM)," NIA said.
Cross-LoC trade was started with much fanfare in 2008
Touted as one of the biggest Confidence Building Measures (CBMs) the trade between traders of Jammu and Kashmir and Pakistan-occupied Jammu and Kashmir was started in the year 2008 via two Trade Facilitation Centres (TFCs) located at Salamabad, Uri in Baramulla district of Kashmir Valley, and Chakan-da-Bagh in Poonch district of Jammu province.
As per the SoPs of the trade mechanism, 21 articles were allowed to be traded between PoJK and J&K and were based on the barter system.
Trade was suspended in April 2019
The much-publicized cross-LoC trade was suspended in April 2019 after it was established that some traders were involved in illegal activities and violating SoPs.
While suspending the cross-LoC trade, the Home Ministry mentioned in April 2019 that this trade was used for terror funding.
Businessman Zahoo Ahmed Watali, who was the president of the LoC traders association, was chargesheeted for funneling money to terrorists, separatists, and subversive elements in the valley.
The NIA has decoded the modus operandi of dubious hawala transactions for terror financing.
The Home Ministry revealed that a significant number of trading concerns engaging in the cross-LoC trade are being operated by persons closely associated with banned terrorist organizations, especially Hizbul Mujahideen.
Mentioning the recovery of 66.5 kg of heroin seized from a Valley-based consignee, Home Ministry mentioned that cross-LoC trade was used as a regular channel of funneling drugs such as cocaine, brown sugar, and heroin into the Valley.
The cross-LoC trade was exploited for periodically smuggling arms and ammunition into the Valley. Numerous seizures have been made of pistols, grenades, spares, and ammunition.
