Press Information Bureau
Government of India
Ministry of Home Affairs
03-January-2018 05:09IST
Sources of funding of Naxalism and Terrorism

As per reports, the demonetization of bank notes of Rs. 500 and Rs. 1000 denomination resulted in significant positive impact on most theatres of violence in the country. LWE cadres have deposited illegal money into the accounts of the sympathizers or simple villagers.  Nearly Rs.97.75 lakh was seized from various LWE groups after demonetization. Besides, Left Wing Extremists have also protested against the demonetization drive, thus indicating their discontentment. Since illegally held cash forms the major chunk of terrorist funding, after the demonetisation, most of the cash held with the terrorists turned worthless.  Demonetisation also led to instant extinguishment of Pak-printed high quality fake Indian currency notes.  It also adversely affected the hawala operators.

This was stated by the Minister of State for Home Affairs, Shri Hansraj Gangaram Ahir  in a written reply to question in the Rajya Sabha today.