The Enforcement Directorate (ED) has officially initiated a money laundering investigation against Maulana Shamsul Huda Khan, an Islamic preacher currently based in the United Kingdom. The probe, registered under the stringent Prevention of Money Laundering Act (PMLA), was confirmed by officials on Thursday, December 26, 2025.
Roots in Uttar Pradesh ATS FIR and Allegations of Radicalisation
The federal agency's case is built upon an earlier First Information Report (FIR) filed by the Uttar Pradesh Anti-Terrorism Squad (ATS). The ATS had flagged serious concerns regarding alleged financial irregularities and suspected connections to radical groups associated with Khan.
Khan, who originally hails from Azamgarh district in Uttar Pradesh, worked as an assistant teacher at a government-aided madrasa back in 1984. Investigators now accuse him of exploiting his religious standing to promote radical ideology under the cover of providing religious education.
The ED is meticulously examining his purported ties with radical organisations operating from the UK and his alleged association with Dawat-e-Islami, a Pakistan-based group known for its fundamentalist outreach activities.
Foreign Travel, Citizenship, and Questionable Salary
According to sources familiar with the investigation, Khan's international movements are a key focus. He reportedly undertook multiple trips to Pakistan and several other nations, and these foreign connections are being scrutinised for potential illegal funding and influence networks.
In a significant revelation, agency sources disclosed that Khan obtained British citizenship in 2013. However, he allegedly continued to receive a salary from the Uttar Pradesh government until 2017. This payment occurred despite him no longer being an Indian citizen and not performing any teaching duties while residing abroad, raising serious questions about fund diversion and fraud.
Scrutiny of Crores in Funds and High-Value Properties
The financial trail uncovered by investigators points to large-scale transactions. Over the past two decades, Khan is alleged to have received substantial funds totalling several crores of rupees. These funds were channeled through at least eight different bank accounts maintained in India.
"It has further been found that he acquired more than a dozen immovable properties, with an estimated value exceeding Rs 30 crore," revealed a source. These properties, located across various regions, are now under the ED's scanner to determine if they were bought using proceeds from money laundering or through unaccounted foreign transactions.
The probe has also revealed that Khan established two madrasas in Azamgarh and Sant Kabir Nagar. Both these institutions were later deregistered by state authorities for alleged violations of norms. The ED is now working to unravel the overseas funding channels that may have been tied to these madrasas and a broader network of religious entities connected to Khan.
Wider Implications and Ongoing Investigation
This case highlights the continued focus of Indian investigative agencies on tracking cross-border financial flows suspected of funding activities that threaten national security. The ED's move under PMLA indicates the seriousness of the allegations, which combine charges of financial malfeasance with suspicions of radical links.
The investigation remains active and ongoing, with the agency piecing together evidence from property records, bank statements, and foreign travel details to build a comprehensive case against the UK-based preacher.
