India proposes pact with US on fake notes

New Delhi: India is exploring the possibility of signing an agreement with the US on fake currency notes and has reiterated its demand for statements made to investigators in that country by associates of David Headley and Tahawwur Rana, accused in the 2008 Mumbai terrorist attack.

Home secretary R.K. Singh, part of a delegation led by minister of external affairs S.M. Krishna to the third strategic dialogue with the US government last week, made a representation to this effect to his US counterparts.

India and the US have discussed the issue of fake currency notes at recent meetings. India has told the US that Pakistan’s Inter-Services Intelligence (ISI) spy agency is behind the clandestine network that is being used to pump fake currency notes into India. Both countries have agreed to share technology and information to counter the menace.

India is also considering the inclusion of fake Indian currency notes under the Unlawful Activities (Prevention) Act, which entails more stringent provisions. Not only will it attract more punitive action, bail will also be more difficult to obtain. Only terrorist organizations and people associated with them are currently covered under the law.

The official said Singh also sought statements of 13 people associated with Headley and Rana, alleged members of the Lashkar-e-Taiba terrorist grouping. They were arrested in the US in October 2009.

India had in 2010 sent a letter rogatory to the US seeking a copy of the complaints made by Headley’s estranged wife to the Federal Bureau of Investigation (FBI) about his links with the militant outfit.

The government then asked the Moroccan government to extradite her as she is believed to have information and answers to key questions related to the incident.

Indian investigators hold that she could provide information about Hafiz Mohammad Saeed, the founder of Lashkar-e-Taiba and alleged mastermind of the Mumbai terror attack.

sahil.m@livemint.com