PC acts against terror funds

Nearly two years after Parliament responded to the 26/11 Mumbai terror attack by updating the anti-terror legal framework, home minister P Chidambaram on Thursday moved the Lok Sabha to make production, circulation or smuggling of fake currency a terror act.

Nearly two years after Parliament responded to the 26/11 Mumbai terror attack by updating the anti-terror legal framework, home minister P Chidambaram on Thursday moved the Lok Sabha to make production, circulation or smuggling of fake currency a terror act.

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Chidambaram also proposed amendments to India's primary anti-terror law — Unlawful Activities (Prevention) Act — to expand the definition of terrorism to cover threats to economic security.

It also provides for attachment of property of accused charged with circulating counterfeit currency, equal to the face value of the counterfeit currency involved.

Besides, as first reported by HT, it proposes to raise the duration of a ban on terror groups from two to five years.

In a move to tighten the law for terror funding, Chidambaram has proposed to outlaw raising and collection of funds from any source in the knowledge that the money was likely to be used — in part or full — by any terrorist gang or individual.

It would not matter if the money is eventually used for terror or not.

Also, the amendments seek to make every person including promoters of a company liable for prosecution if the company commits an offence under the anti-terror law. This provision was incorporated to deal with instances of a company's funds benefiting a terror group.

The senior management, other officers can escape prosecution if the they can prove that the offence was committed without their knowledge and they had exercised due diligence.