The Enforcement Directorate (ED) in Lucknow is actively pursuing an investigation into an alleged money laundering and illegal funding case involving Maulana Shamsul Huda Khan, an Islamic preacher based in the UK. On Tuesday, the agency conducted search operations at two locations in Uttar Pradesh as part of its efforts to uncover evidence related to the case. This action was undertaken under the Prevention of Money Laundering Act (PMLA), amidst allegations of fraud, the concealment of foreign citizenship, and unlawful asset acquisition.
Search Operations in Uttar Pradesh
The searches targeted two residential properties associated with Khan, located in the Sant Kabir Nagar and Azamgarh districts of Uttar Pradesh. The investigation was prompted by three first information reports (FIRs) filed by the Uttar Pradesh Police, which accuse the preacher of various offenses, including fraud and conspiracy. The ED has detailed that Khan was initially appointed as a primary school teacher at a madrasa in 1984 and obtained UK citizenship in 2013. Despite acquiring this foreign citizenship, Khan reportedly continued to receive his salary until 2017 and benefited from pension payouts until 2023.
Allegations of Concealment and Illegal Acquisition
The ED has alleged that Khan concealed his foreign citizenship, misrepresented his nationality, and unlawfully obtained immovable properties while receiving government salaries and retirement benefits without proper entitlement. Investigators claim that funds were misdirected through NGOs under his control, disguised as donations, to finance the construction of madrasas and to acquire properties. Financial analyses indicated that over Rs 5 crore was deposited in the bank accounts belonging to Khan and entities associated with him, which included accounts at various banks such as the Central Bank of India, Indian Bank, and HDFC Bank.
Findings on Financial Transactions and Property Acquisitions
The agency reported that these financial transactions occurred in both Khan’s name and that of organizations such as the Raza Foundation and Kuliyatul Banatir Razabia Educational and Welfare Society. Substantial money transfers were traced between 2007 and 2025, suggesting the unlawful receipt of salaries and pension benefits despite the cessation of his Indian citizenship. During the search operations, significant incriminating documents and records concerning the ownership of 17 immovable properties were recovered. The properties were originally purchased for approximately Rs 3 crore, but their current market value is estimated at around Rs 20 crore. The seized materials are currently undergoing detailed examination to determine the scale of the alleged proceeds of crime.
Investigation into International Links and Activities
Moreover, investigators have indicated that Khan traveled to multiple foreign nations over the last twenty years, receiving funds through various Indian bank accounts. The ED has raised concerns that Khan promoted radical ideologies and engaged in illegal financial activities disguised as religious education. Allegations have been made that he routed money to different madrasas through his NGO and his personal banking arrangements. Khan is also reported to have visited Pakistan and is suspected of having affiliations with a Pakistan-based radical organization, Dawat-e-Islami. The ED is pursuing inquiries into the broader funding network, any foreign connections, and assets associated with the accused.
