he monk is under scanner by Indian Police after hundreds of thousands of dollars were found in his monastery.
Officers quizzed the Karmapa over $600,000 in dollar bills and currencies from another 25 countries discovered at his residence in Dharamshala, the hill station in northern India where many Tibetan exiles are based.
Five other people were arrested, including a hotelier, according to Indian media reports that said the money at monastery was linked to a land purchase deal.
Tibetan exiles dismissed suggestions that the cash showed the Karmapa was bankrolled by China, which cracks down strongly on any move backing the Tibet region becoming autonomous or independent.
On Sunday the Karmapa's aides told reporters that the money could all be accounted for and that it came from donations to the Gyuto monastery where he lives.
The Karmapa fled Tibet in 1999 as a 14-year-old because he said he was concerned that Beijing would force him to turn against the Dalai Lama, who has acted as a father figure for him in Dharamshala.
China regards the Dalai Lama as a dangerous separatist, and has sought to groom monks who would accept Tibet as an integral part of China and drop all claims for an independent state.
The existence in India of the Tibetan movement, which lobbies openly against Beijing and denounces the human rights situation in Tibet, is a constant thorn in the side of relations between the two Asian giants.
The Karmapa is one of the most revered religious figures in his homeland and could be one of a handful of candidates who steps forward to lead the community once the charismatic Dalai Lama dies.
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