Yasin Malik, Six Others To Face PMLA Charges Over Alleged Hawala Funding

A money trail allegedly running through hawala channels and foreign funding has brought separatist leader Yasin Malik and six others before a Special NIA Court in New Delhi. The court has directed that charges be framed against the seven accused under the Prevention of Money Laundering Act (PMLA).

The Enforcement Directorate has alleged that proceeds of crime worth Rs 8,94,87,639 were generated in the case. According to the agency, the money was subsequently received, routed, transferred, concealed, possessed, acquired or used through various channels.

The allegations concern funds allegedly received from the Pakistani establishment and other organisations through hawala and other channels. The prosecution says the money was used to further a separatist ideology and subversive activities in Jammu and Kashmir. The allegations are part of a case arising from an NIA investigation registered in 2017.

What Has The Court Said?

Special NIA Judge Prashant Sharma ordered the framing of charges after examining the material placed before the court. The court said there was prima facie material giving rise to a “strong suspicion” against all seven accused for an offence under Section 3 of the PMLA, punishable under Section 4.

The accused named in the case are Yasin Malik, Zahoor Ahmed Shah Watali, Abdul Rashid Sheikh, Shabir Ahmad Shah, Naval Kishore Kapoor, Masarat Alam Bhat and Trison Farms and Construction Pvt Ltd.

The agency has alleged that the money was subsequently moved through different channels and was linked to activities that the prosecution says were aimed at advancing secessionist and subversive activities in Jammu and Kashmir.

What Is The Alleged Funding Trail?

The case centres on allegations that foreign funds were brought into India through hawala channels and other conduits. The ED has alleged that the network involved funds from the Pakistani establishment and other sources, which were subsequently received and used by the accused.

The agency has also alleged that cash couriers collected money from the Pakistan High Commission in New Delhi and delivered it to members of the Hurriyat leadership, including Malik. These allegations form part of the prosecution's account of how the alleged funding network operated.

The proceedings are connected to an NIA case registered in 2017. The underlying investigation invoked provisions of the Indian Penal Code and the Unlawful Activities (Prevention) Act, while the present proceedings concern alleged money laundering under the PMLA.

The formal proceedings have also faced security-related logistical issues. Some accused could not be physically produced before the court, following which the Enforcement Directorate was directed to obtain their signatures on the charges while they remain in judicial custody. The next hearing is scheduled for October 30.