PFI-SDPI Gulf Funding Exposed: Funds Funneled Through Illegal Hawala Channels | File Photo
Mumbai: A probe into the financial networks of the Popular Front of India (PFI) and its political front the Social Democratic Party of India (SDPI) has uncovered a systematic and allegedly clandestine fundraising operation in the Gulf region. Investigation revealed that the PFI and the SDPI also maintained relationships with a likeminded organisation in Gulf Countries operating under the name of ‘IFF-ISF’.
According to the investigation carried out by the Enforcement Directorate (ED), ‘IFF’ stands for ‘Indian Fraternity Forum’ and works under the PFI, while the ‘ISF’, which stands for ‘Indian Social Forum’, works under the SDPI. The cadres/members of these two overseas organisations are used by PFI and SDPI for collecting funds, mainly in the form of ‘Ramadan Collection’ (RC). Investigation has revealed that leaders from PFI and SDPI have visited these countries for attending the meetings of these organisations. However, such funding from overseas sources are not reflected in PFI accounts, implying that these are allegedly transferred through clandestine hawala channels.
A key document, titled ‘Minutes of the Meeting of Zonal Presidents, Secretaries, and ISF President’, dated December 14, 2018, was recovered from a digital device seized during a raid at PFI’s Kerala headquarters at Unity House in Kozhikode, on December 3, 2020. The document reportedly quotes M.K. Faizy, who attended the meeting in Bahrain’s Manama, emphasizing the requirement of manpower and resources for the party. Fund-raising targets for the party (SDPI) were assigned to the zonal units of ISF in Saudi Arabia.
A Delhi court on Monday extended the ED custody of Faizy for three days. This extension follows the ED’s request for additional time to interrogate Faizy and trace the alleged money trail linked to the banned Popular Front of India (PFI).
The ED investigation reveals that foreign funds received from various countries, including Gulf nations, by PFI were not reflected in its bank accounts. Investigation says that PFI had thousands of active members in Gulf countries and had been systematically raising and collecting substantial funds from abroad in a well-organized manner. The investigation also found that PFI leveraged its presence in Gulf countries to raise funds, which were then transferred to India through complex banking channels, illegal underground hawala networks, or remittances sent to the accounts of its members, activists, and office bearers of Campus Front of India (CFI), the student wing of the banned Popular Front of India (PFI), and other affiliated organisations linked to the PFI.
The financial probe agency found that the CFI played a crucial role in the organisation’s financial network, particularly in channeling funds from Gulf nations. Notably, CFI was banned in September 2022 under the Unlawful Activities (Prevention) Act (UAPA) along with PFI and seven other affiliated outfits. Investigations have revealed that PFI had a structured fundraising presence in Gulf nations, facilitating systematic financial transfers. Officials linked to the probe disclosed that K.A. Rauf Sherif, CFI’s national general secretary, was arrested by the ED in December 2020 for allegedly receiving over Rs 1 crore from a Chinese-controlled company under the pretext of mask trading. Further inquiries uncovered that PFI members abroad funnelled money into non-resident Indian (NRI) accounts in the UAE and other Gulf nations, which was then rerouted to accounts linked to PFI leaders, including those associated with CFI, as part of a broader clandestine funding strategy.
The probe also pointed to National Women’s Front (NWF) and National Confederation of Human Rights Organizations (NCHRO) as key PFI-affiliated groups involved in fund mobilisation. Agencies claim that the internal documents seized from PFI describe the true objectives of the banned organisation, describing it as a body committed to advancing an Islamic movement in India by endorsing the principles of Jihad in all forms. It positions itself internally as an Islamic movement and externally as a social movement. To achieve these goals, the PFI established SDPI and several frontal organisations like NCHRO and NWF.
