The Karmapa has been charged with conspiracy under penal provisions.
"We are awaiting sanction from the central government for prosecuting the accused under the Foreign Contribution (Regulation) Act (FCRA)," said Sumedha Diwedi, Superintendent of Police.
The Karamapa is the spiritual head of Karma Kagyu school and is considered the third most important religious head after the Dalai Lama and the Panchen Lama.
The police recovered currencies of 26 countries, including Indian currency worth around Rs 5.3 million and 120,197 Chinese yuan, from the Karmapa"s Gyuto Tantric University and Monastery on Jan 28, 2011.
It was after the seizure around Rs 1 crore meant for land purchase, the police conducted searches at the monastery and recovered the currency.
Apart from the Karmapa, seven others were also arrested in the case. All seven have been bailed in the case.
Refuting charges, the Karmapa"s office said that the money seized was collection of donations from the spiritual leader's followers.