ED raids madrassa teacher’s properties in PMLA case

Lucknow: The Enforcement Directorate (ED) on Wednesday conducted raids at four locations in Sant Kabir Nagar and one in Azamgarh in connection with a money laundering case registered against Maulana Shamsul Huda Khan, a govt-recognised madrassa teacher from Azamgarh.He is accused of fraudulently drawing state salary and retirement benefits while living abroad and allegedly maintaining links with Pakistan-based religious networks.The ED booked Huda under the Prevention of Money Laundering Act (PMLA) following multiple FIRs, an Anti-Terrorist Squad (ATS) investigation and a detailed police reference that flagged suspected foreign funding, misuse of NGO structures and ideological influence operations on Dec 25, 2025.The search operations conducted at the aforesaid residential premises resulted in recovery and seizure of various incriminating documents and records relating to acquisition of 17 immovable properties. The declared purchase value of these properties is approximately Rs 3 crore, while the present market value is estimated to be around Rs. 20 crore. The seized documents are under detailed examination to ascertain the extent of proceeds of crime involved. According to ED sources, Huda allegedly acquired properties worth approximately ₹33 crore in Sant Kabir Nagar within a short span. Investigators also flagged cash deposits of around ₹5 crore in bank accounts linked to suspicious entities. His bank accounts and possible foreign investments are currently under scrutiny.On official records, Huda continued to serve as a madrassa assistant teacher, regularly availing medical leave and updating service documents before securing voluntary retirement (VRS) with full benefits in 2017. However, 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 for nearly a decade, amounting to around ₹16 lakh, apart from pensionary benefits.An FIR was registered under Section 318(4) of the Bharatiya Nyaya Sanhita (cheating) and relevant provisions of the Foreign Exchange Management Act (FEMA), 1999. 2 additional FIRs were lodged—1 in Azamgarh for cheating and forgery, and another in Sant Kabir Nagar alleging concealment of British citizenship and offences related to anti-national activities.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 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 as personal commissions.The district administration earlier sealed his girls' madrassa over financial irregularities. A second madrassa opened in an adjoining compound was sealed again on Nov 3.ED said that during the course of investigation, financial analysis has revealed that more than Rs 5 Crore has been received in the bank accounts of Shamsul Huda Khan and entities controlled by him, including accounts maintained with Central Bank of India, Indian Bank, Punjab National Bank, Bank of Baroda, HDFC Bank and State Bank of India, in his personal capacity as well as in the name of Raza Foundation and Kuliyatul Banatir Razabia Educational and Welfare Society.The financial investigation has revealed substantial transactions between 2007 and 2025. Investigation has also established unlawful receipt of salary and pensionary benefits despite cessation of Indian citizenship.