The Enforcement Directorate (ED) has registered a money laundering case against Shamsul Huda, a former madrassa teacher from Uttar Pradesh who has been residing in the United Kingdom since 2007. The case, filed under the Prevention of Money Laundering Act (PMLA), follows an investigation by the Anti-Terrorist Squad (ATS). Huda is accused of fraudulently receiving government salary and retirement benefits for a decade while living abroad, acquiring British citizenship, and allegedly having links with Pakistan-based religious networks.
According to ED sources, Huda amassed properties worth Rs 33 crore and cash worth Rs 5 crore from suspicious entities. Officials have described the case as "one of the most extraordinary instances of administrative collusion and systemic breakdown" within the state's madrassa education framework. The investigation was initiated following multiple FIRs, an ATS probe, and a reference from police authorities in Sant Kabir Nagar, which flagged suspected foreign funding, misuse of NGO structures, and ideological influence operations in eastern Uttar Pradesh.
Official records indicate that Huda was a serving assistant teacher at a government-recognized madrassa, regularly availing medical leave and updating service records, ultimately securing voluntary retirement in 2017 with full benefits. Despite leaving India in 2007 and obtaining British citizenship by 2013, he continued to receive his salary uninterrupted for 10 years, estimated to be Rs 16 lakh, in addition to pension benefits.
The ED is currently scrutinizing Huda's bank accounts and foreign investments. The Uttar Pradesh government initiated a crackdown on November 22, suspending four senior officials of the minority welfare department for allegedly facilitating illegal salary disbursal, sanctioning unauthorized leave, and clearing documents related to his voluntary retirement.
An FIR has been filed against Huda under Section 318(4) of the Bharatiya Nyaya Sanhita (BNS) for cheating and relevant provisions of the Foreign Exchange Management Act (FEMA), 1999. Two additional FIRs have been filed: one in Azamgarh for cheating and forgery, and another in Sant Kabir Nagar for allegedly concealing his British citizenship and waging war against India.
The ED is focusing on tracing the source of foreign funds, bank accounts linked to Huda, property transactions in India and abroad, possible hawala or illegal fund transfers, and links to foreign entities or individuals. Authorities have stated that the case involves alleged misuse of public funds, forged documentation, and potential violations of foreign exchange and national security laws. Sources familiar with the probe suggest that the investigation is examining whether the funds were misused for activities that may pose a threat to national security and whether Huda violated provisions related to foreign citizenship while continuing to avail government benefits in India. A Special Investigation Team is also examining his foreign travel history, NGO registration documents, bank and donation trails, departmental approval files, and communications between Huda and local officials.
