The Enforcement Directorate (ED) has taken decisive action against a case of alleged large-scale fraud and money laundering involving a government-recognised madrassa teacher from Uttar Pradesh. The agency registered a case under the Prevention of Money Laundering Act (PMLA) on Thursday against Maulana Shamsul Huda Khan, who is accused of fraudulently drawing his salary and retirement benefits for a decade while living abroad as a British citizen.
A Decade of Deception and Systemic Collusion
According to official records, Shamsul Huda Khan was a serving assistant teacher at a madrassa in Azamgarh. In a shocking breach of administrative protocols, he managed to receive his salary without interruption for ten years, estimated at Rs 16 lakh, along with pension benefits, despite having left India in 2007. He settled in the United Kingdom and obtained British citizenship by 2013. During his absence, he regularly availed medical leave, updated his service records, and even secured voluntary retirement in 2017 with full benefits, all while residing overseas.
ED sources have revealed that the probe has uncovered properties worth an astonishing Rs 33 crore and cash amounting to Rs 5 crore, allegedly amassed from suspicious entities. Officials have described this as "one of the most extraordinary instances of administrative collusion and systemic breakdown" within the state's madrassa education framework.
Multiple FIRs and a Web of Allegations
The ED's action follows a trail of investigations initiated by other agencies. The case came to light after multiple First Information Reports (FIRs), a probe by the Anti-Terrorism Squad (ATS), and a detailed reference from police authorities in Sant Kabir Nagar. These reports flagged serious concerns, including suspected foreign funding, misuse of NGO structures, and operations aimed at ideological influence in eastern Uttar Pradesh.
Currently, the Enforcement Directorate is meticulously scrutinising Huda's bank accounts and foreign investments to trace the trail of the alleged laundered money. Apart from the PMLA case, three separate FIRs have been lodged against him:
- One under Section 318(4) (cheating) of the Bharatiya Nyaya Sanhita (BNS) and relevant provisions of the Foreign Exchange Management Act (FEMA), 1999.
- A second FIR in Azamgarh for charges of cheating and forgery.
- A third FIR in Sant Kabir Nagar for allegedly concealing his British citizenship and even waging war against India.
Government Crackdown and Suspensions
In response to the massive administrative failure, the Uttar Pradesh government launched a crackdown on November 22. Four senior officials from the minority welfare department were suspended for their alleged role in facilitating the illegal salary disbursal, sanctioning unauthorised leave, and clearing documents related to the voluntary retirement of the accused teacher.
This case has exposed significant vulnerabilities in the oversight of educational institutions and payroll systems. It raises urgent questions about accountability and the mechanisms needed to prevent such brazen exploitation of public funds, especially when linked to broader allegations of connections with Pakistan-based religious networks.
