ED Uncovers Punjab’s Drug Money-Terror Financing Network; Red Fort Case Among Key Investigations

The Enforcement Directorate (ED) has launched significant investigations into money laundering linked to terror financing and drug trafficking. In its Annual Report for 2025–26, the agency outlined two notable case studies, including the Red Fort blast and the Al Falah Trust, which resulted in the arrest of its founder, Dr. Jawad Ahmed Siddiqui. Another case involved the Khalistan Liberation Force (KLF), accused of utilizing drug money to fund its operations.

The ED’s report emphasizes the intricate financial crime frameworks uncovered during the year. These frameworks reveal how both legitimate institutions and transnational criminal networks are exploited for terror financing. The agency noted a concerning trend where illicit financial flows are increasingly integrated into otherwise lawful structures, complicating detection efforts and heightening risks.

Case 1: Red Fort Terror Attack

Following the Red Fort terror attack, the ED initiated a money laundering investigation based on two FIRs against Al Falah University in Faridabad. The university faces allegations of misleading students by falsely claiming NAAC accreditation and UGC certification. Key figures involved, including the suicide bomber Umar un Nabi, had connections to the university.

ED Director Rahul Naveen highlighted the agency’s swift response to the Red Fort blast, underscoring its enhanced vigilance regarding the money laundering aspects of terrorism and espionage cases.

The ED’s investigation into the AFL Charitable Trust and others was prompted by FIRs filed by the Delhi Police. The findings revealed that AFL University, under the AFL Charitable Trust and the direct control of Mr. JAS, misrepresented its accreditation status and falsely claimed recognition under Section 12(B) of the University Grants Commission Act. The AFL School of Medical Sciences and Research Centre was found to have engaged in extensive regulatory malpractice, including the use of fictitious faculty, fabricated records, and manipulated inspections to secure approvals from the National Medical Commission.

These actions were part of a systematic scheme to deceive students, parents, and regulators, generating substantial fee income based on false representations. The ED has estimated that approximately ₹493.24 crore was generated as proceeds of crime through fraudulent inducement and misrepresentation.

To date, the ED has attached assets worth ₹179.4 crore, including university buildings, land, residential properties of the accused, bank balances, fixed deposits, and shareholdings.

Case 2: Narco Terrorism Probe

The ED also initiated an investigation into the KLF for operating an illicit drug network and a transnational narco-terror operation. This money laundering case originated from an FIR filed by the Punjab Police in 2019 following significant drug seizures.

The investigation revealed that proceeds from the illicit drug trade were layered through various channels and extended across multiple countries. The network had connections in the UAE, Pakistan, and the USA.

KLF Global Terror Operations

The ED identified HKM as a crucial financial node for the banned KLF, facilitating the flow of funds from narcotics trafficking into terror activities. The agency described the network as a vertically integrated system, sourcing heroin from Afghanistan via Pakistan and routing it into India through vulnerable corridors such as Jammu & Kashmir.

ED’s Findings

The proceeds generated from these operations were collected domestically and transferred through hawala channels to Dubai for layering and subsequent transmission to terror operatives. The investigation uncovered the misuse of licensed foreign exchange entities as covert conduits, with direct overseas control over local operatives.

The global dimension of the network was further underscored by the designation of JSKM and related entities under the US OFAC sanctions regime. The ED’s actions led to the recovery of 1.06 kg of gold and 370 grams of diamond jewelry, and an Interpol notice has been issued against the accused.

As reported by www.timesnownews.com.

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Published on 2026-05-01 17:28:00 • By FAME Delivered News Desk