Enforcement Directorate probing Zakir Naik’s laundering of Rs200cr through shell companies

MUMBAI: Controversial Islamic preacher Zakir Naik and his Islamic Research Foundation (IRF) allegedly diverted funds to other NGOs, which the Enforcement Directorate (ED) is probing. The ED suspects that Naik, through

shell

companies, laundered around Rs 200 crore. It on Friday produced arrested accused, Aamir Gazdar, Naik’s confidant, before the special court, which remanded him to ED custody.

Gazdar’s lawyer, Mubin Solkar, said, “The economic offences wing (

EOW

) is also probing a case against Gazdar and he had produced relevant documents before them. Earlier, the National Investigation Agency (NIA) had raided his premises. He was cooperating with them and the ED, so there was no need to arrest him.”

The ED stated that they needed Gazdar’s custody to ensure that he does not influence witnesses and tamper with evidence.

The ED’s remand application stated that dummy companies were established by Naik in India and abroad. The companies were used to cover up diversion of funds Naik received through provocative speeches, it said. Gazadar was a director with Naik’s six companies; two in England and four in Mumbai.

The application stated that Mumbai-based Harmony Media had produced videos of provocative speeches and exported them to Dubai for telecast.

The ED’s lawyer, Hiten Venegaonkar, said, “We demanded custodial interrogation to probe dummy companies and money transactions.”

Sources said Naik allegedly routed around Rs 200 crore suspicious earnings through shell companies into IRF, Harmony Media and his own accounts. A large part of the money deposited with Harmony Media was allegedly used to purchase electronic equipment. Naik’s money was allegedly used for property purchase but IRF money was used to fund some other NGOs. There were several cash withdrawals from the accounts too, which the ED is probing.

Last year, the central government banned Naik’s IRF under the Unlawful Activities Prevention Act (UAPA), stating that it was encouraging and aiding followers to promote disharmony, feelings of enmity and hatred between religious communities. Last year, police arrested an IRF employee for his role in converting one of 21 Keralites who left the country last year to join Daesh (Islamic State).