Mumbai, Dec 01: The Enforcement Directorate (ED) on Monday conducted searches at 12 locations across Maharashtra in connection with alleged violations of the Foreign Contribution Regulation Act (FCRA) and a money-laundering probe linked to a Nandurbar-based trust, Jamia Islamia Ishaatul Uloom (JIIU).
Officials said the searches were conducted at the premises of JIIU in Nandurbar district as well as multiple locations in Mumbai linked to the trust and associated individuals. The action is part of an ongoing probe involving the trust, a Yemeni national named Al-Khadami Khaled Ibrahim Saleh, and others.
The ED action stems from an FIR registered by the Maharashtra Police and a chargesheet filed in April this year by the Akkalkuwa Police Station. The police investigation had alleged that several foreign nationals, including Saleh, were involved in suspicious financial activities linked to the trust.
According to officials, the Ministry of Home Affairs (MHA), through an order dated July 15, 2024, cancelled the FCRA registration of the JIIU trust after an investigation revealed that it had allegedly channelled foreign contributions to other NGOs that were not registered under the FCRA, in violation of the law.
Investigators red-flagged the pattern of unexplained fund inflows into the trust’s accounts, along with a series of dubious financial transactions that did not correspond with its declared activities. The investigation also pointed to suspected misuse and diversion of foreign contributions received not only by the trust but also by individuals closely associated with it. The investigation also flagged violations of the FCRA and the movement of funds through opaque channels, prompting the ED to initiate a money-laundering probe under the Prevention of Money Laundering Act (PMLA) to trace the source, trail, and end-use of the suspected illicit transactions.
The ED action forms part of a broader investigation by the Maharashtra Anti-Terrorism Squad (ATS) and the Nandurbar Police into alleged systematic FCRA violations, including diversion of foreign funds originating from countries such as the UAE and Saudi Arabia for non-permitted activities.
The probe also covers allegations that the trust allowed foreign nationals to stay illegally. During the February searches, police reportedly recovered several Aadhaar and PAN cards obtained using false information. Investigators said the accused had used unlawfully obtained documents and misrepresented their nationality to secure benefits, and were illegally residing in the hospital quarters at Akkalkuwa in Nandurbar. Police further revealed that two individuals linked to the trust are accused of sheltering and assisting the main accused in evading authorities.
Further investigation by the ATS and Nandurbar Police revealed that the associated As-Salam Unani Hospital and Medical College allegedly submitted fake or inflated patient data to obtain government grants and official recognition. The probe also flagged irregularities in student admissions, noting that more than 12,000 madrasa students, many from Bihar, Uttar Pradesh, West Bengal, and Jharkhand, were admitted in recent years, reflecting an unusual surge in out-of-state enrolments.
Additionally, the trust is under scrutiny for suspected land encroachment, particularly on government or tribal plots, allegedly carried out under the guise of institutional expansion.
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Sources said that Monday’s searches led to the seizure of financial documents and digital records while the raid was ongoing at the time of the publishing of the report. The ED is examining the flow of funds, beneficiary networks, and the roles of individuals suspected of diverting foreign donations.
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