A Delhi special court has moved the money-laundering case against Yasin Malik, Baramulla MP Sheikh Abdul Rashid and five others into the trial stage, directing the prosecution to begin presenting evidence from November 19.
Special Judge Prashant Sharma issued the direction after charges under the Prevention of Money Laundering Act were framed against the accused.
The court had earlier found sufficient material to raise a strong suspicion of their involvement in the alleged laundering of funds linked to separatist and terror-related activities in Jammu and Kashmir.
The allegations have not been proved at trial.
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Prosecution Evidence to Begin on November 19
The latest order marks an important procedural shift.
The case has now moved beyond the stage of deciding whether there is enough material to frame charges.
The Enforcement Directorate will next begin presenting witnesses and documentary evidence before the court.
This is the stage at which the prosecution must prove its allegations through admissible evidence rather than relying only on the material used to justify framing charges.
Malik appeared through video conferencing from Tihar Jail during the hearing.
He denied the charge and said he would contest the proceedings.
The other accused include Engineer Rashid, separatist leaders Shabir Ahmad Shah and Masarat Alam Bhat, businessman Zahoor Ahmad Shah Watali, Nawal Kishore Kapoor and Trison Farms and Constructions Pvt Ltd.
ED Alleges ₹8.94 Crore Was Laundered
The Enforcement Directorate alleges that around ₹8.94 crore in proceeds of crime was generated, received, transferred and concealed through a network of intermediaries.
According to the agency, funds originating from Pakistan were routed through hawala channels and cash couriers.
The ED alleges that some of the money was collected from the Pakistan High Commission in New Delhi and delivered to separatist leaders.
It claims the funds were then used to support separatist organisations and activities in Jammu and Kashmir.
These claims remain prosecution allegations and will now have to be established through evidence before the trial court.
The court’s earlier September 9 order had said the material on record raised a strong suspicion against the accused.
That threshold is lower than the standard required for conviction.
Case Stems From 2017 NIA Investigation
The money-laundering case originates from a National Investigation Agency case registered in 2017.
That investigation alleged a wider conspiracy involving terror financing and separatist activity.
The ED opened its own investigation on June 14, 2017, based on the NIA case.
Under the PMLA, the agency can investigate whether money linked to a scheduled offence was concealed, possessed, acquired, used or projected as legitimate property.
The ED alleges that the accused received and handled funds connected to the underlying offences.
Investigators have cited banking records, documents, alleged hawala transactions and other material collected during the probe.
The defence will have the opportunity to challenge that evidence during trial.
Malik Already Serving Life Sentence in Separate Case
Yasin Malik is already serving a life sentence after being convicted in a separate terror-funding case in 2022.
He had pleaded guilty in that prosecution.
The National Investigation Agency later challenged the sentence before the Delhi High Court and sought enhancement to the death penalty.
That appeal is a separate proceeding from the current PMLA case.
It is important not to merge the two.
The present case concerns alleged laundering of funds linked to the wider terror-funding network.
Engineer Rashid is also facing separate legal proceedings connected to terror-funding allegations.
He has denied wrongdoing in those cases.
Trial Will Test Money Trail and Witness Evidence
The prosecution will now need to establish how the alleged money moved, who received it and how each accused participated in the alleged laundering process.
That could involve testimony from investigators, financial records, documentary evidence and witnesses linked to the alleged hawala network.
The defence can cross-examine those witnesses and challenge the authenticity, relevance or interpretation of documents relied upon by the ED.
This stage is therefore substantially different from framing charges.
At the charge stage, a court only decides whether there is enough material to proceed.
At trial, the prosecution must prove guilt beyond reasonable doubt.
The November 19 hearing will begin that evidence-testing process.
What this means for you:
The case has now crossed from preliminary judicial scrutiny into a full trial. The earlier charge order did not establish guilt; the prosecution must now prove its money-laundering allegations through witnesses and evidence in court.
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