UK citizenship, Indian salary, foreign funds: inside the ED case against Shamsul Huda Khan

The Enforcement Directorate (ED) has filed a money laundering case against Islamic preacher Maulana Shamsul Huda Khan, currently based in the United Kingdom, and has initiated a probe under the Prevention of Money Laundering Act (PMLA), a report said on Friday.

The action follows an FIR filed by the Uttar Pradesh Anti-Terrorism Squad (UP ATS), bringing alleged foreign funding, asset accumulation and suspected radical links into focus.

Advertisement

Case registered under PMLA after UP ATS FIR

According to officials, the ED probe stems from an FIR registered by the UP ATS. The agency has invoked provisions of the PMLA to examine suspected illicit financial flows and assets allegedly linked to Khan.

As per available records, Shamsul Huda Khan was appointed as an assistant teacher in a government-aided madrasa in 1984. He later acquired British citizenship in 2013. However, investigators allege that despite becoming a UK citizen and residing abroad, he continued to draw a salary between 2013 and 2017, without actively discharging teaching duties during that period.

Salary draw despite UK citizenship under scrutiny

Officials said the alleged continuation of salary payments after the acquisition of foreign citizenship forms a key part of the investigation, as Khan was neither residing in India nor performing his teaching responsibilities at the time.

During the past two decades, Khan reportedly travelled to several foreign countries. Investigators allege that he received substantial funds amounting to several crores of rupees through seven to eight bank accounts maintained in India.

Funding trail and assets worth over Rs 30 crore

The ED is also examining Khan’s alleged acquisition of more than a dozen immovable properties, with their estimated value exceeding Rs 30 crore. The assets are suspected to have been purchased using proceeds linked to illegal funding activities, officials said.

Investigators allege that Khan promoted radical ideology and engaged in unlawful funding under the guise of religious education. A native of Azamgarh, he is accused of routing funds to multiple madrasas through his NGO, Raja Foundation, as well as through his personal bank accounts.

Madrasas in Azamgarh, Sant Kabir Nagar under scanner

Officials said Khan had established two madrasas in Azamgarh and Sant Kabir Nagar. The registrations of both institutions were subsequently cancelled by the competent authorities.

Agencies are also scrutinising Khan’s overseas connections. Officials said his alleged links with radical organisations based in the United Kingdom are under examination. Further, since he had visited Pakistan, his suspected contacts with extremist organisations there are also being probed. Investigators believe he is associated with the Pakistani radical organisation Dawat-e-Islami.

At present, the Enforcement Directorate is mapping the funding network, foreign linkages and assets connected with the accused as part of the ongoing money laundering investigation.