ED Conducts Raids in Uttar Pradesh in Major Money Laundering Investigation
The Enforcement Directorate (ED) executed coordinated search operations on Wednesday at multiple locations across Uttar Pradesh as part of a significant money laundering probe. The raids targeted four premises in Sant Kabir Nagar district and one location in Azamgarh district, all linked to Maulana Shamsul Huda Khan, a government-recognized madrassa teacher from Azamgarh who faces serious financial misconduct allegations.
Properties Worth Crores Seized in Raid Operations
During the extensive search operations conducted at residential properties, investigators recovered and seized numerous incriminating documents and financial records. These materials relate to the acquisition of seventeen immovable properties whose declared purchase value stands at approximately Rs 3 crore. However, the current market valuation of these assets is estimated to be around Rs 20 crore, indicating substantial undervaluation and potential concealment of actual wealth.
According to ED sources familiar with the investigation, Huda allegedly acquired properties worth approximately Rs 33 crore in Sant Kabir Nagar district alone within a remarkably short timeframe. The seized documents are undergoing detailed forensic examination to determine the precise extent of proceeds of crime involved in these transactions.
Complex Web of Financial Irregularities Uncovered
The investigation has revealed a sophisticated network of financial irregularities spanning nearly two decades. Investigators have flagged suspicious cash deposits totaling around Rs 5 crore in bank accounts linked to questionable entities. Huda's personal bank accounts and potential foreign investments are currently under intense scrutiny as authorities trace the money trail.
Financial analysis conducted during the investigation has established that more than Rs 5 crore flowed through bank accounts controlled by Shamsul Huda Khan and his associated entities. These include accounts maintained with multiple prominent banks: Central Bank of India, Indian Bank, Punjab National Bank, Bank of Baroda, HDFC Bank, and State Bank of India. The transactions occurred both in his personal capacity and through organizational entities including the Raza Foundation and Kuliyatul Banatir Razabia Educational and Welfare Society.
Dual Life: Teaching Position Maintained While Living Abroad
Official records indicate that Huda continued serving as a madrassa assistant teacher on paper, regularly availing medical leave and updating service documents before securing voluntary retirement with full benefits in 2017. However, investigators present a dramatically different narrative, claiming he actually left India in 2007, settled permanently in the United Kingdom, and obtained British citizenship by 2013.
Despite this prolonged absence from India spanning nearly a decade, his salary allegedly continued uninterrupted, amounting to approximately Rs 16 lakh, in addition to pensionary benefits he received after retirement. The investigation has conclusively established unlawful receipt of salary and pension benefits despite the cessation of his Indian citizenship status.
Multiple Legal Cases and NGO Network Under Scrutiny
The ED registered the case under the Prevention of Money Laundering Act (PMLA) following multiple First Information Reports (FIRs), an extensive Anti-Terrorist Squad (ATS) investigation, and a detailed police reference that raised concerns about suspected foreign funding, misuse of NGO structures, and ideological influence operations dated December 25, 2025.
An initial FIR was registered under Section 318(4) of the Bharatiya Nyaya Sanhita (pertaining to cheating) along with relevant provisions of the Foreign Exchange Management Act (FEMA), 1999. Two additional FIRs were subsequently lodged—one in Azamgarh addressing cheating and forgery allegations, and another in Sant Kabir Nagar alleging concealment of British citizenship and offenses related to anti-national activities.
Educational Institutions and NGO Operations Investigated
Following his return to India, Huda established Madrassa Kulliyatul Banatir Rajviya (Niswa) in Khalilabad and founded two non-governmental organizations: Kulliyatul Banatir Rajviya Educational & Welfare Society and Raza Foundation. The ATS investigation flagged multiple foreign donations routed through these NGO accounts, rapid institutional expansion, operation of a girls' hostel from a rented property, and alleged diversion of funds as personal commissions.
The district administration had previously sealed his girls' madrassa over financial irregularities. A second madrassa opened in an adjoining compound was sealed again on November 3 as part of the ongoing crackdown on questionable financial operations.
The financial investigation has uncovered substantial transactions occurring between 2007 and 2025, painting a picture of systematic financial misconduct that authorities are now working to fully unravel through continued examination of seized evidence and financial records.
