Mumbai, Feb 11 (IANS): The Reserve Bank of India had rejected an application by Lashkar-e-Taiba (LeT) terrorist-turned-approver David Coleman Headley seeking clearance to open a business account in June 2007, a Mumbai special court was informed on Thursday.

Making this revelation, Headley said he had received funds for terror from both LeT and Pakistan's ISI which was used for gathering intelligence and other works in India, including starting a business.

With this funding, Headley said, he opened an office in south Mumbai's Tardeo area and on October 12, 2006, he even applied to Reserve Bank of India for permission to open a business account.

Interestingly, his visa consultant in Chicago, Raymond Sanders - who had earlier assisted him in procuring an Indian visa with false information - also helped him in the RBI formality, but the country's apex bank rejected the application on June 1, 2007.

In January 2007, hoping to launch a business in India, Headley had hired an office in Tardeo A/C Market for Rs. 13,500 per month and named his landlord as Vora and Maroo Bharucha who was his secretary at the office.

The opening of office and application to open a business bank account were in consonance with the earlier plans by his handlers who wanted him to start a business in India.