Chidambaram stated, "Investigations are underway in Karmapa case. No conclusion drawn whether he is a Chinese agent or not."
However, China on the same day denied Karmapa's any connection with the country and also added, "The doubt showed India's 'mistrustful attitude' towards Beijing."
China's government official on Jan 31 claimed, "The speculation by India's media, regarding the matter of the Karmapa as a Chinese agent or spy, shows that India is keeping its mistrustful attitude toward China."
The controversy raised when Himachal Pradesh police seized foreign currency worth Rs 6.5 crore from a transit home of 17th Karmapa near Dharamsala on Jan 27.
The 17th Karampa is the possible successor of Dalai Lama.
Following the exposing of the hawala scam, Karampa has been suspected to be a Chinese link helping Beijing control Buddhist monasteries in Ladakh in Jammu and Kashmir to Tawang in Arunachal Pradesh.
(With inputs from PTI)