ED Conducts Raids in Sant Kabir Nagar in Major Money Laundering Probe
The Enforcement Directorate (ED) executed coordinated raids at four distinct locations in Sant Kabir Nagar on Wednesday, intensifying a high-stakes money laundering investigation. The operation targets Maulana Shamsul Huda Khan, a government-recognized madrassa teacher originally from Azamgarh, who stands accused of orchestrating a complex financial fraud scheme while residing overseas.
Allegations of Fraudulent Salary Drawals and Foreign Links
According to official documents, Huda is alleged to have fraudulently drawn his state salary and retirement benefits for nearly a decade while living abroad. Investigators claim he left India in 2007, settled in the United Kingdom, and obtained British citizenship by 2013. Despite his prolonged absence, his salary allegedly continued until his voluntary retirement in 2017, amounting to approximately ₹16 lakh, plus pensionary benefits. The ED has booked Huda under the Prevention of Money Laundering Act (PMLA), following multiple FIRs and an Anti-Terrorist Squad (ATS) investigation that flagged suspected foreign funding, misuse of NGO structures, and ideological influence operations.
Properties Worth ₹33 Crore and Suspicious Cash Deposits
ED sources reveal that Huda allegedly acquired properties valued at around ₹33 crore in Sant Kabir Nagar within a remarkably short timeframe. Additionally, investigators have identified cash deposits totaling approximately ₹5 crore in bank accounts linked to suspicious entities. His bank accounts and potential foreign investments are currently under rigorous scrutiny as the probe deepens.
Administrative Collusion and Systemic Failures Exposed
Official records indicate Huda continued to serve as a madrassa assistant teacher, regularly availing medical leave and updating service documents, before securing voluntary retirement with full benefits in 2017. On November 22, the Uttar Pradesh government suspended four senior Minority Welfare Department officials for allegedly facilitating illegal salary disbursal, approving unauthorized leave, and clearing his VRS papers. Officials have described this case as one of the most extraordinary instances of administrative collusion and systemic failure within the state's madrassa education framework.
Legal Framework and Multiple FIRs Filed
An FIR has been registered under Section 318(4) of the Bharatiya Nyaya Sanhita for cheating, along with relevant provisions of the Foreign Exchange Management Act (FEMA), 1999. Two additional FIRs were lodged—one in Azamgarh for cheating and forgery, and another in Sant Kabir Nagar for concealing British citizenship and offences related to anti-national activities.
ATS Report Details Foreign Travel and Influence Operations
An ATS report dated March 25, 2025, alleges that Huda frequently traveled to Pakistan for religious outreach activities, maintaining contact with clerics and organizations in Lahore, Karachi, and Rawalpindi. The report also notes his interactions with separatist-leaning individuals in Jammu and Kashmir. After returning to India in 2017, he allegedly attempted to build ideological influence in eastern Uttar Pradesh through foreign-funded religious institutions.
NGOs and Madrassas Under Scrutiny for Fund Diversion
Post-return, Huda established Madrassa Kulliyatul Banatir Rajviya (Niswa) in Khalilabad and floated two NGOs—Kulliyatul Banatir Rajviya Educational & Welfare Society and Raza Foundation. The ATS has flagged multiple foreign donations routed through NGO accounts, rapid institutional expansion, operation of a girls' hostel from a rented house, and alleged diversion of funds for personal gain. The district administration had earlier sealed his girls' madrassa over financial irregularities, and a second madrassa opened in an adjoining compound was sealed again on November 3.
Ongoing Investigation and Future Actions
Investigators suspect these institutions functioned as operational nodes for foreign fund inflows and influence-building. ED officials emphasize that the money trail is only partially uncovered, and further attachments and arrests are likely as the probe progresses. The case continues to unfold, revealing layers of financial misconduct and alleged foreign connections that have shaken the administrative and educational systems in Uttar Pradesh.
