NEW DELHI: A Special National Investigation Agency (NIA) court in New Delhi has directed that charges be framed against separatist leader Yasin Malik and six others under the Prevention of Money Laundering Act (PMLA) in a case concerning alleged foreign funding received through hawala channels.
Special NIA Judge Prashant Sharma, after examining the material on record, held that there was prima facie sufficient material to raise strong suspicion against all seven accused and directed that they be charged under Section 3 of the PMLA, punishable under Section 4.
The Enforcement Directorate (ED) has alleged that proceeds of crime amounting to Rs 8,94,87,639 were generated and subsequently received, routed, transferred, concealed, possessed, acquired or used by the accused through various channels.
Special NIA Court at New Delhi has directed to frame charges against Yasin Malik and 6 others under PMLA for allegedly receiving foreign funding from a Pakistani establishment through Hawala channels.
It is alleged that proceeds of crime of Rs.8,94,87,639 were generated and…
— ANI (@ANI) October 1, 2026
Seven accused named in PMLA case
Besides Yasin Malik, the accused are Zahoor Ahmed Shah Watali, Abdul Rashid Sheikh, Shabir Ahmad Shah, Naval Kishore Kapoor, Trison Farms and Construction Pvt Ltd, and Masarat Alam Bhat.
The prosecution has alleged that the accused received funds from a Pakistani establishment through hawala channels and from other terrorist outfits through various means. The funds were allegedly used to propagate separatist ideology and carry out activities described by the agencies as prejudicial to the law of the land.
Court finds prima facie material
In its order, the Special NIA Court said the material on record raised a strong suspicion against all seven accused, warranting the framing of charges under the PMLA.
The ED investigation found that the alleged proceeds of crime were handled through multiple channels. The agency has alleged that the funds were routed and transferred through a network involving several individuals and entities.
According to the NIA’s second supplementary chargesheet, Malik allegedly received Rs 15,75,595 from Saudi Arabia. The court noted that the total foreign funds allegedly received by Malik amounted to Rs 30,75,595, which the prosecution has treated as proceeds of crime.
ED alleges foreign funding network
The ED case stems from an NIA case registered in 2017. The agency alleged that Malik, who was then associated with the Jammu & Kashmir Liberation Front (JKLF), received foreign funds through Zahoor Ahmad Shah Watali, along with Shabir Ahmad Shah and Masarat Alam, during 2015-16.
The ED has further alleged that emails linked to Malik indicated the existence of a network to raise funds abroad. According to the agency, the funds were used to support the JKLF and further alleged secessionist activities and violence in Jammu and Kashmir.
The agency also alleged that money was routed through cash couriers who collected funds from the Pakistan High Commission in New Delhi and subsequently delivered them to Hurriyat leaders, including Malik.
