The groups earned an estimated Rs 78,210,500 from the sale of hides, the Dawn newspaper quoted reports of the Intelligence Bureau as saying.
Members of the outlawed and extremist groups intimidated officials who tried to stop them from collecting the hides of animals sacrificed during Eid-ul-Azha, the report said.
According to the intelligence reports, the JuD and its front organisation Falah-e-Insaniat Foundation collected a total of 92,800 hides in Punjab.
The Jaish-e-Mohammed and its front organisation Al-Rehmat Trust too collected thousands of hides across the province.
Other banned groups involved in the collection of hides are Sipah-e-Sahaba Pakistan, Tehrik-e-Jaffaria Pakistan, Shia Ulema Council, Sunni Tehrik, Harkat-ul-Mujahideen and Al-Badr Mujahideen.
The Punjab government has expressed its "displeasure" at the failure of the police and the civil administration in enforcing the ban on the collection of hides by the groups,
the report said.
The provincial government had issued two directives on October 11 and 15 that banned the collection of hides by outlawed and extremist groups.
Police and the civil administration had been directed not to allow the groups to display their banners or set up camps to collect the hides.
Citing the Intelligence Bureau's reports about the collection of hides and the estimated amount earned from their sale, the Home Department has asked police and the civil administration to explain why they failed to check the activities of the extremist groups.
According to the intelligence reports, when a police station chief in Jhelum tried to stop workers of the Jamia Hanfia Taleemul Islam from setting up a hide collection camp on October 27, he was threatened.
Following this, police allowed the workers to continue their illegal activity.
In another incident on October 28, police at Bhalwal in Sargodha district detained three members of a banned group for collecting hides but had to release them two days later, reportedly on the orders of a senior officer.
The counter-terrorism department of Punjab has informed the provincial police chief about the "ineffective enforcement of law against the proscribed organisations that set up camps to collect hides for fund raising during Eidul Azha every year", the report said.
Persons involved in such activities were to be booked under the Anti-Terrorism Act but "no effective action was taken against them by the district administration and the
The intelligence reports further said the police and civil administration had not made "serious efforts" to enforce the government's policy as the extremist groups put up their banners and set up collection points all over Punjab.