Madrassas in Pakistan receive more than 800 million pounds a year - equivalent of the country's income tax revenue - through charitable donations mainly from wealthy British-based Muslim businessmen.
An investigation conducted by Brussels-based International Crisis Group (ICG) has found damning evidence of how some prominent Muslim businessmen in Britain are using bogus charities to funnel millions of pounds to seminaries that are alleged to produce as many gunmen as they do clergy. According to the study a large number of the seminaries are now controlled by pro-Taliban islamic militant organisations fighting in Kashmir. A section of radical clergy also enjoy immense personal wealth, the report said.
India had sent a CBI team here in July to offer Scotland Yard evidence of 14 businessmen in Britain who they say are funnelling cash to these Islamic seminaries and terrorist groups.
A senior Indian diplomat said: "We began this campaign long before September 11 but still nothing is done. The gun is the terrorists first weapon, the second is dirty money."
British Prime Minister Tony Blair and Foreign Secretary Jack Straw have been shown the list of India's suspects. The Charity Commissioners are investigating at least three groups named by the Indian police.
One of the suspects is expatriate
Kashmiri leader Ayub Thakur, whose charity, Mercy Universal, is among those
being investigated. Thakur claims he has no connection with Kashmiri militants
and has documents to prove all the money he raised is sent to charitable
projects.