Washington, (Agencies): According to a new report, counterfeit currency has become a grave issue in India with fake rupees believed to be printed in Pakistan and then channeled through Dhaka, Bangladesh, and Bangkok, Thailand, into Kathmandu.

The report revealed says that the heavy inflow of fake currency is leading to some speculations that some Pakistani elements are deliberately trying to "create confusion and destabilise India."

According to the Indian authorities estimates as many as 400 million fake rupee notes with a face value of some $9 million are in circulation in the state of Uttar Pradesh alone, and fake currency dealers in Nepal projected in 2009 that "by 2010 nearly 10,000 crore ($2.2 billion) of fake currency will be in circulation in India".

The report said that destabilizing elements within states are also known to use profits from wildlife trafficking in order to fund military operations,.

"Somali warlords and two Islamic extremist groups in India with ties to Al Qaeda, Harakat ul-Jihad-i-Islami-Bangladesh (HuJI-B) and Jamaatul Mujahedin Bangladesh (JMB), have sponsored illegal elephant and rhino poaching," it said, citing Interpol and the US State Department.

"This development has implications not only for developing countries but also for international security," it said.

As with other forms of trafficking, the illegal kidney trade generally "flows from poor, underdeveloped countries to rich, developed ones".