The Bangladeshi Home Secretary, Shafiur Rahman, has denied allegations by the Indian government that the largest separatist rebel group in northeast India, ULFA raises funds by running businesses in Bangladesh.

Mr Rahman said the allegations, contained in an Indian government publication, were baseless and untrue, and that the Indian government had not made any official complaint on the matter to Bangladesh.

ULFA's military wing chief, Paresh Barua, also denied the allegations.

An Indian Home Ministry spokesman said its publication is to be circulated on an international basis -- a move seen by observers as aiming to undermine ULFA through a concerted propoganda offensive.