The hijacking of Indian Airlines flight IC 814 should not have come as a surprise to the Indian intelligence community. To those involved in gathering information along the porous Indo-Nepal border, unmistakable signs of increased ISI activity in Nepal and the bordering Indian states of Uttar Pradesh, Bihar and West Bengal had become visible over a decade ago. Kathmandu today is the de facto regional headquarters of the ISI from where it masterminds a whole array of activities through a chain of madrasas in Bihar and the eastern states-a parallel locus of its operations in India.