The Uttar Pradesh Police have registered a case against British national, for allegedly channeling foreign funds to Indian madrassas through non-governmental organisations (NGOs).
The accused identified as Shamsul Huda Khan, is originally from Deoria Lala, Chaikala village in Sant Kabir Nagar district.
According to officials, the funds were collected under the pretext of promoting Islamic education but were allegedly diverted for other purposes.
An FIR was lodged late on the evening of November 2 at the Kotwali Police Station following a written complaint by the District Minority Welfare Officer.
The case has been booked under provisions of the Foreign Exchange Management Act (FEMA), 1999, and Sections 13 and 318(4) of the Bharatiya Nyaya Sanhita (BNS).
Kotwali police in-charge Pankaj Pandey confirmed that the accused is under investigation for “illegally collecting and transferring foreign funds” and said a deeper probe is underway to trace the money trail.
An inquiry by the Anti-Terrorism Squad (ATS) revealed that Khan allegedly collected donations from foreign organisations and individuals, which were routed to Indian madrassas through intermediaries. He is accused of earning commissions on these transactions.
Investigators found that Khan had set up two NGOs — Kulliyatul Banatir Rajviya Educational and Welfare Society and Raza Foundation — which were allegedly used as conduits to transfer money from abroad into India under the guise of educational and welfare projects.
Police records show that Khan lived in the United Kingdom between 2007 and 2017, reportedly without obtaining permission from Indian authorities.
During this period, he acquired British citizenship in 2013 and continued maintaining financial and ideological links with groups in India, officials said.
Sources involved in the inquiry claimed that Khan maintained contact with radical elements in Pakistan and Jammu and Kashmir, allegedly using religious and educational platforms to promote Islamist activities.
Security agencies are now investigating whether the funds were used to support individuals or organisations already under surveillance for extremist connections.
Officials said various state investigative units, including the ATS and the Economic Offences Wing (EOW), are jointly verifying Khan’s financial records, NGO activities, and foreign remittances.
Senior police officers described the case as part of a broader statewide crackdown on illegal foreign funding networks and unauthorised religious education centres.
A detailed report will be submitted to the Home Department after cross-verification of the NGO accounts and bank transactions.
Authorities added that further action — including potential invocation of the Foreign Contribution (Regulation) Act (FCRA) — would depend on the outcome of the ongoing probe.
In recent years, Uttar Pradesh has stepped up scrutiny of unregistered madrassas and NGOs suspected of receiving illicit foreign contributions.
Several earlier cases have revealed that funds from abroad were allegedly funneled through charity organisations to promote religious indoctrination instead of education.
The latest case involving Shamsul Huda Khan adds to growing concerns over transnational financial networks exploiting India’s educational and charitable systems for ideological purposes.