WASHINGTON (Sputnik) – A leading Canadian Muslim charity has been suspended and fined for sending $136,000 to a group allegedly linked to armed militants in the disputed region of Kashmir where militants are fighting Indian troops, according to media reports.

The Canada Revenue Agency said it had suspended the Islamic Society of North America-Canada (ISNA- Canada) for a year starting on September 12 and ordered the charity to pay a $550,000 fine, Canada’s Global News reported on Monday.

CRA audit documents obtained by the media outlet alleged that between 2007 and 2009 ISNA-Canada "gifted" $90,000 to the Relief Organization for Kashmiri Muslims (ROKM).

The audit documents also revealed that ISNA-Canada provided an additional $46,000 to the Kashmiri Relief Fund of Canada, which has previously fundraised for the ROKM, according to the CRA.

The CRA described the ROKM as the "charitable arm" of Jamaat-e-Islami, a Pakistani Islamist political party whose armed wing, Hizbul Mujahideen, is listed as a terrorist group in India, Europe and the United States. Hizbul Mujahideen fighters are battling Indian troops in the disputed region of Kashmir.

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Canada did not revoke the group’s charity status, but required the group to cease its overseas operations, according to the report.

The group has denied any wrongdoing, according to the media outlet.