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The machines were developed by two state-controlled companies and outsiders were not allowed to attack them to test the security. An anonymous source provided Mr. Prasad a machine and he found ways to compromise it, and went on TV and talked about it. Police raided his home, he would not reveal the source that gave him the machine, so they arrested him on possession of stolen property.
http://www.wired.com/threatlevel/2010/08/researcher-arrested-in-india
http://www.wired.com/threatlevel/2010/08/researcher-arrested-in-india