Reports said officials of the Income Tax department, Intelligence Bureau, Enforcement Directorate and RAW, the country’s external intelligence agency, questioned Karmapa in Dharamsala.
Himachal Pradesh Police had on Thursday raided the monastery of the 17th Karmapa here and arrested his close aide, following the seizure of unaccounted money from two people on Wednesday night, who are also under police custody.
The Central government is reported to be mulling strict action against the Tibetan spiritual leader if the same is recommended by the Himachal Pradesh government.
Sources in the Central government say there was already suspicion among intelligence agencies that Ugyen Trinley Dorjee was a Chinese agent.
The Karmapa had fled Tibet and sought refuge in India in January 2000. Ever since, he has mostly lived in the Gyuto Tantric monastery in Sidhbari near Dharamsala - the seat of the Tibetan government-in-exile.
The Karmapa is the spiritual head of the Karma Kagyu school, one of the four sects of Buddhism. He is considered the third most important Tibetan religious head after the Dalai Lama and the Panchen Lama.
With the developments of the last two days bringing his office into a major cash controversy, the Karmapa missed the Saturday morning prayers and public audience.
The Karmapa has been confined to his rooms on the top floor even though the authorities are not officially saying that he is under house arrest.
The Karmapa's office, in a statement said, they were "complying fully with the investigation".
"Our lineage and His Holiness the Karmapa enjoy the love, trust and faith of millions across the world. We have a rich history of public service made possible through financial dealings that are entirely transparent," the Karmapa Office of Administration aid in the statement.
"We will certainly answer all questions that the press and the public have, but for now we respectfully request you to allow us to concentrate on complying fully with the investigation that is underway," it added.
Police believe the money recovered was meant for some 'illegal' land deal in Dharamsala in Kangra district with the involvement of Karmapa's aide Rubgi Chosang.
“The raid on Karmapa's monastery was conducted following seizure of Rs 1 crore from two people last (Wednesday) night,” Director General of Police DS Manhas told reporters.
Sanyog and Ashutosh, both belonging to this town, were arrested in Una district, bordering Punjab.
Police suspect that the cash was drawn from two private banks in New Delhi a few days ago.
Inspector General PL Thakur said a substantial amount of foreign currency was also seized from the offices in Karmapa's monastery.
