Earlier this year, the Indian media, quoting unnamed security sources, reported concerns the Karmapa Lama could be a Chinese stooge sent to India to set up pro-Chinese monasteries.
There is longstanding suspicion in India about Chinese interference in Indian affairs amid friction over a disputed frontier. The two countries fought a brief but bitter border war in 1962.
The Karmapa said he fled Tibet because he was concerned Beijing would force him to turn against the charismatic Dalai Lama, who has acted as a father-like figure for him in Dharamshala.
The Tibetan is one of the most revered religious figures in his homeland and is seen as as having the highest profile of a cast of young lamas who might fill the void when the charismatic Dalai Lama, now 75, dies.
The Karmapa's general secretary Karma Chungyalpa told the news conference the money found by police totalled 60 million rupees ($1.4 million) and were "offerings by devotees" from around the world and had been accumulated.
"I have my hands full in fulfilling my religious duties," he said