The Enforcement Directorate (ED) has initiated a money laundering investigation against Islamic preacher Maulana Shamsul Huda Khan under the Prevention of Money Laundering Act (PMLA), alleging involvement in terror funding linked to Lashkar-e-Taiba (LeT). Raids were conducted across multiple locations, uncovering financial trails tied to banned organisations, with the probe stemming from a National Investigation Agency (NIA) case registered in 2023.
Authorities in India have launched a high-profile money laundering probe targeting prominent Islamic preacher Maulana Shamsul Huda Khan, focusing on alleged terror funding activities. The Enforcement Directorate (ED) registered the case under the stringent Prevention of Money Laundering Act (PMLA) following inputs from the National Investigation Agency (NIA).
This development marks a significant escalation in efforts to dismantle financial networks supporting banned terrorist groups like Lashkar-e-Taiba (LeT).
The investigation centres on financial transactions purportedly channelled through Khan’s religious and charitable activities. As reported by ANI News in their article titled
“Money laundering probe launched against Islamic preacher Maulana Shamsul Huda Khan,”
the ED’s action comes after a detailed analysis of predicate offences registered by the NIA. The NIA had filed a case in 2023 accusing Khan and associates of collecting funds under the guise of religious propagation to support LeT operations.
Probe Details
The ED’s probe was formally registered based on the NIA’s First Information Report (FIR), which detailed suspicious fund flows. According to the ANI report by their national general news desk, published on 26 December 2025, the agency conducted searches at several premises linked to Khan in Uttar Pradesh and Delhi. These operations yielded documents and digital records indicating hawala transactions and bank transfers routed through multiple shell entities.
Maulana Shamsul Huda Khan, known for his sermons and madrasa affiliations, has been named as the primary accused. As per the same ANI coverage, the NIA’s 2023 case under the Unlawful Activities (Prevention) Act (UAPA) alleged that Khan mobilised donations from Middle Eastern donors, disguising them as zakat contributions. The funds were allegedly diverted to LeT handlers in Pakistan-occupied Kashmir (PoK).
ED sources, quoted anonymously in the ANI article, revealed that preliminary probes uncovered transfers exceeding ₹5 crore over two years. These included remittances to suspected overground workers (OGWs) involved in radicalisation efforts in sensitive border districts.
Background of the Case
The origins trace back to intelligence intercepts in late 2022, leading to the NIA’s intervention. As detailed in the ANI news piece, the federal agency monitored Khan’s public speeches where appeals for funds were made explicitly for “jihadist causes.” Subsequent digital forensics linked his mobile banking apps to international wire transfers originating from Gulf countries.
Khan’s organisation, reportedly registered as a trust for Islamic education, received bulk donations via crowdfunding platforms. ANI reported that the ED froze three bank accounts holding ₹1.2 crore during Thursday’s raids. Digital wallets and cryptocurrency holdings are also under scrutiny for potential layering of proceeds of crime.
No arrests have been made yet, but summons have been issued to Khan and five associates for questioning next week. The preacher, based in Muzaffarnagar, Uttar Pradesh, maintains a significant online following with over 500,000 subscribers on social media platforms.
Agency Statements
The ED issued an official statement confirming the PMLA registration. As reported by ANI, ED Additional Director General Amit Kumar stated,
“The probe is at an early stage, but evidence points to a well-structured syndicate using religious platforms for terror financing.”
He emphasised coordination with the NIA and Uttar Pradesh Anti-Terrorism Squad (ATS).
NIA Superintendent of Police Rajnish Rai, cited in the ANI article, noted,
“Khan’s network exploited vulnerabilities in charitable giving to funnel money across borders. Our FIR provides the predicate for ED’s action.”
The agencies plan joint operations to trace overseas assets.
Local police in Muzaffarnagar provided logistical support during raids. Superintendent of Police Abhishek Verma remarked,
“We ensured seamless execution without public disruption. Community leaders have been briefed to maintain calm.”
Khan’s Profile and Activities
Maulana Shamsul Huda Khan, aged 52, rose to prominence through weekly sermons broadcast from his madrasa in Muzaffarnagar. ANI’s coverage highlights his travels to Saudi Arabia and Qatar, where he solicited funds during Hajj seasons. Associates claim these were legitimate dawah efforts, but investigators allege selective routing to militants.
Khan’s speeches often referenced Kashmir conflicts, drawing NIA attention. In one 2022 video, still available online, he urged,
“Every Muslim must contribute to freeing occupied lands.”
Digital footprints link these appeals to donation spikes coinciding with LeT attacks.
His family runs a chain of three madrasas enrolling 1,200 students. Financial audits revealed disproportionate expenditures on non-educational items, fuelling laundering suspicions.
Linked Investigations
This probe intersects with broader counter-terror efforts. As per ANI, it builds on a 2024 NIA crackdown busting a LeT module in Rajasthan, where similar hawala routes surfaced. ED’s parallel cases against other preachers, like Maulana Saad Kandhlawi, share modus operandi traits.
International cooperation is sought via Mutual Legal Assistance Treaties (MLATs) with the UAE and Saudi Arabia. Financial Intelligence Unit-India (FIU-IND) flagged suspicious transaction reports (STRs) in 2023, triggering the chain.
Uttar Pradesh Chief Minister Yogi Adityanath’s office welcomed the action, stating it aligns with zero-tolerance towards terror financing. No political affiliations are alleged against Khan.
Reactions from Stakeholders
Khan’s supporters gathered outside his residence post-raids, terming it a “witch-hunt.” Madrasa board member Maulana Abdul Qadir said,
“These are baseless accusations to silence Islamic voices.”
He called for judicial oversight.
Human rights activist Nadeem Khan urged,
“Investigate transparently without targeting the community.”
Opposition leaders, including Samajwadi Party’s Abu Azmi, demanded evidence disclosure.
The BJP’s Uttar Pradesh unit spokesperson Rakesh Tripathi responded,
“Law will take its course; no one is above scrutiny.”
All India Muslim Personal Law Board (AIMPLB) has yet to comment officially.
Financial Trails Uncovered
Raids seized 15 laptops, 20 mobile phones, and ledgers documenting cash couriers. ANI detailed ₹2.3 crore in unexplained deposits to Khan’s personal accounts. Beneficiaries included PoK-based entities disguised as relief NGOs.
Cryptocurrency wallets traced to Binance hold ₹45 lakh in tether (USDT), converted from donations. ED cyber experts are decoding encrypted chats on Telegram channels run by Khan’s aides.
Shell firms in Delhi’s Okhla registered under relatives received ₹80 lakh, then remitted abroad via trade-based laundering.
Legal Framework
Under PMLA, proceeds of crime are attachable from the offence date. ED seeks provisional attachment orders within 180 days. Twin conditions for bail make it stringent.
NIA’s UAPA charges carry life imprisonment. Courts have upheld such probes in past LeT cases, like that of Zakir Naik’s IRF.
The case exemplifies India’s multi-agency approach post-Pulwama, with ED attaching ₹1,800 crore in terror assets since 2019.
Ongoing Developments
Further raids are planned in Bihar and Jharkhand. Khan has approached the Allahabad High Court seeking protection. Hearing scheduled for 28 December 2025.
NIA teams are in Saudi Arabia verifying donor identities. ED’s Delhi Zonal Unit leads, with Mumbai inputs on hawala.