Bengaluru: In a significant development that comes amid the Enforcement Directorate’s (ED) recent crackdown on alleged violations involving foreign funding and non-governmental organisations (NGOs), the Karnataka High Court has refused to quash criminal proceedings under the Unlawful Activities (Prevention) Act (UAPA) against six persons associated with US-based evangelical organisation The Timothy Initiative (TTI).
The case assumes significance as central agencies, including the ED and the National Investigation Agency (NIA), have intensified scrutiny of foreign fund inflows, alleged violations of the Foreign Contribution (Regulation) Act (FCRA), and the possible diversion of overseas funds into sensitive regions across the country.
Justice M. Nagaprasanna dismissed petitions filed by Micah Mark, Jonathan S. Rajan, Ajit Verghese Mathai, Varghese Chacko, Bablu Kurmi and Supreme Joy, all of whom are stated to be associated with The Timothy Initiative. The petitioners had sought quashing of the criminal case registered against them under various provisions, including the UAPA.
The prosecution alleges that foreign bank debit cards linked to Truist Bank in the United States were brought into India and repeatedly used to withdraw cash from ATMs across multiple states. According to investigators, the money was subsequently utilised to finance the activities of TTI in India despite the Christian organisation allegedly not being registered under the FCRA.
The investigation further alleges that substantial cash withdrawals were made in regions affected by Left Wing Extremism (LWE), raising concerns among security agencies over the source, movement and end-use of the foreign funds.
Refusing to interfere with the investigation, Justice Nagaprasanna made strong observations on the importance of safeguarding national security against clandestine financial networks.
“The case concerns national security. National security is the invisible architecture upon which the sovereignty, stability and constitutional order of a nation rest,” the court observed. The judge further remarked that one of the gravest threats facing the country today is the secret financing of extremist activities.
“Funding becomes the oxygen that enables extremist movements to survive and proliferate. The danger of extremist financing lies not merely in the money transferred but in the consequences it unleashes. Left unchecked, such funding can transform ideological extremism into organised violence, threatening national unity and public safety,” the order stated.
The High Court noted that materials collected during the investigation, including communication records and financial transactions, disclosed a prima facie case requiring detailed investigation. It observed that the allegations were not confined merely to violations of financial laws but extended to offences that could potentially affect the sovereignty, territorial integrity and internal security of the country.
According to the order, the communication records presently available indicate that the alleged activities may attract provisions of the UAPA since they involve the movement of foreign funds into Naxal-affected regions.
The court emphasised that at the stage of investigation, it would be inappropriate to exercise its inherent jurisdiction to quash criminal proceedings when the allegations relate to national security.
The ruling comes at a time when the Enforcement Directorate has been conducting searches and investigations into several organisations and individuals suspected of violating FCRA provisions and routing foreign funds through unofficial channels. Central agencies have repeatedly maintained that such mechanisms are sometimes used to circumvent regulatory oversight, making financial transactions difficult to trace.
Investigators in the present case are examining whether overseas debit cards were systematically used as an alternative channel to withdraw foreign funds in India without following the statutory framework governing foreign contributions. The agencies are also probing the ultimate utilisation of the withdrawn cash and whether it was used in areas affected by Left Wing Extremism.
Legal experts note that the High Court’s refusal to quash the proceedings does not amount to a finding of guilt against the accused. Instead, the order enables investigating agencies to continue collecting evidence and complete their probe before the matter proceeds to trial.
With the petitions now dismissed, the criminal investigation against the six accused will continue. The order is expected to strengthen ongoing investigations into suspected foreign funding violations and alleged unlawful financial transactions, particularly in cases where investigators believe there are implications for national security and internal stability.
