Leaders of the Toronto-based World Tamil Movement vowed Thursday to fight their recent designation as a terrorist group by seeking a judicial review in Federal Court.

In their first reply to Monday's move by Public Safety Minister Stockwell Day, group members said they've had their Charter rights violated and denied allegations that they extorted money from the Canadian Tamil community.

"There's not a single case of prosecution by the RCMP on that score," said Velupillai Thangavelu, the group's former vice-president.

Lawyers for the group characterized the designation as "actions of a police state."

"Members of the community feel they've been tried, convicted and sentenced, without even knowing they were charged," said lawyer Marlys Edwardh.

Day alleged the non-profit group had been sending funds raised in Canada — sometimes with aggressive intimidation tactics — to the Liberation Tigers of Tamil Eelam.

He accused the group of becoming a front for the Tamil Tigers in Canada, but hasn't said how much money may have been funnelled overseas. Calls to Day's office were not returned.

The Tamil Tigers have been fighting a rebel war in Sri Lanka since 1983 and many groups outside that country have been raising money to support the conflict. Security experts suggest the Canadian contribution lies in the millions.

Sitha Sittampalam, the WTM's former president, said it was "no secret" the group supports self-determination for Tamils in north and eastern Sri Lanka — a political position it is "constitutionally entitled to hold."

He suggested the government could better direct its efforts to promoting peace in the country rather than criminalizing a "community-based" organization.

The WTM has been staffed entirely by volunteers since 1986, he said, and supports Tamil immigrants with a variety of programs and services. As a result of the terror group listing, all its assets were frozen, meaning all cultural, sports, and language training activities will end.

"The entire community feels tarnished and threatened by this announcement," Sittampalam said.

The group's legal team also plans to mount a challenge as to whether the terrorism listing process is constitutional. Edwardh said such decisions are made behind closed doors, with no notice to the organization being targeted and no opportunity is given for it to see the evidence filed against it.

The legal team's first steps include applying for a stay of the terrorist-group designation and setting up a legal defence fund.