Delhi Police sources said Tunda has revealed details of the operation, in which the Islamabad-based brigadier handed bags of fake currency to Kana, who passed them on to Tunda's operatives in Pakistan and Bangladesh. According to these sources, Tunda has claimed to have met the officer on several occasions.

Tunda has allegedly also made revelations that answer several key questions about an unsolved case in which a car packed with explosives was recovered from Ambala cantonment in October 2011. Anti-terrorism agencies of several states have so far been unable to identify the source of the consignment ' 5 kg RDX, two timers and five detonators ' or the people who planted it.

The alleged bombmaker has reportedly told interrogators that in December 2012, the ISI had raided his Karachi home and taken away fake currency with a face value of Rs 9.5 crore.

"He (Tunda) has told us that he, along with Kana, was extorting money from traders in Lahore using the name of the ISI. The ISI had got a whiff of the racket and conducted a raid. They confiscated the fake notes and detained Kana, but Kana apparently struck a deal with the ISI and the money was returned," an investigating officer said.

Police sources claimed that Tunda has said that he received nothing for his role in helping the ISI and Kana push fake currency into India, but that he did at times ask for "Rs 4 lakh or 8 lakh", and got it.

"The notes would be transported in specially made suitcases. On some occasions, they were sent by Samjhauta Express," said an officer, quoting Tunda.

According to sources, Tunda has provided interrogators with the addresses of 19 places where he stayed in Delhi, besides an address in Ahmedabad, and addresses in Pakistan and Bangladesh. He has apparently told interrogators that he is fluent in Hindi, Gujarati, Punjabi, Urdu and Arabic. Sources claimed Tunda has told police that he met Lashkar operatives Zafar Iqbal and Abdul Rehman Makki in Saudi Arabia, who put him in touch with Lashkar founder Hafiz Saeed. It was apparently Saeed who advised him to move to Pakistan. His two wives and children were subsequently moved to Pakistan as well, Tunda has reportedly told interrogators.