<< Tibetan Buddhist leader, the 17th Karmapa Ogyen Trinley Dorje, gestures as he walks on the stage at the Hammerstein Ballroom in New York during his first visit to the United States in 2008.
Frank Franklin Ii, Associated Press

Now, allegations that he's a Chinese spy, and a money launderer to boot, have laid bare divisions in the outwardly serene world of Tibetan Buddhism and longtime tensions between China and India.

There's a lot at stake. The Karmapa is among Tibetan Buddhism's most revered figures and heads the religion's wealthiest sect, with property estimated at $1.2 billion worldwide. His appointment was approved by both Beijing and the Dalai Lama — a rarity — but rivals say he isn't the legitimate leader.

Tibetan Buddhism's image of placid chanting and sublime meditation belies a more edgy history, analysts say, replete with religious figures attacking each other and alliances between monasteries and brutal warlords.

After the 16th Karmapa died in 1981, top lamas split over who should replace him, resulting in three rivals, significant distrust and a fight over control of the previously shared Rumtek Monastery in Sikkim.

"We in the West tend to project all our fantasies about mystical spiritualism onto Tibetan Buddhism," said Erik Curren, author of "Buddha's Not Smiling: Uncovering Corruption at the Heart of Tibetan Buddhism Today." "It's really like a civil war. There's lots of acrimony."

Earlier this year, some 2,000 Tibetans trudged down steep mountain roads to the Gyuto Ramoche Temple, the residence of the Karmapa Ogyen Trinley Dorje, to show their support for the revered leader at the center of the allegations.

"Long live his holiness Karmapa," monks and worshipers chanted, fingering prayer beads and holding aloft pictures of him with the Dalai Lama.

The allegations, largely unsubstantiated, were widely repeated in major Hindi- and English-language media here, prompting aides and supporters to wonder who's fanning the negative publicity.

"There's definitely been a witch hunt," said Kate Saunders, a spokeswoman for the International Campaign for Tibet. She said that with the Dalai Lama aging, Karmapa Ogyen Trinley Dorje is someone able to unify the diverse community.

Some believe Indian security officials may be behind the raids and negative publicity, concerned over the sect's many temples along the sensitive India-China border, keen to boost budgets and influenced by supporters of a rival

"The Karmapa is definitely not a Chinese spy," said Deki Chungyalpa, an adviser. "I think Indian officials and the media had a role in spreading this. It makes the situation a lot more volatile." Followers added that supporters of a rival Karmapa may be involved.

Rabjam Rikki, private secretary to Karmapa Trinley Thaye Dorje, said such suggestions were completely unfounded.

The latest incident began Jan. 26 after police discovered $220,000 in a car at a checkpoint. Under questioning, the driver said it came from the Karmapa Ogyen Trinley Dorje.

A search of the leader's religious offices then turned up $1.4 million more in cash, including $165,000 in Chinese currency, fueling media speculation that the Karmapa was working for Beijing. Under Indian law, residents can hold $2,000 in foreign currency.

"Misunderstandings and mistakes" happened, the Karmapa told followers last week, but he expressed faith that the truth would prevail.

Aides said the cash came from foreign devotees and that the money at the checkpoint was intended for the purchase of land for a new monastery.

Tibetan refugees are not allowed to buy land in India, and buying through an Indian proxy is also illegal. But aides said they had repeatedly informed the Indian government of their plans.

"If you go strictly by the rules, yes, but it wasn't done with any bad intention," said spokesman Karma Topden.

In late January, Chinese Communist Party official Xu Zhitao said the Karmapa was not a Chinese spy, although that's done little to settle the issue.