A Delhi court has ordered framing of PMLA charges against Yasin Malik and six others in a terror-funding case.
What Did the Special NIA Court Order?
Special NIA Judge Prashant Sharma of Patiala House Court directed that charges be framed against all seven accused under the Prevention of Money Laundering Act (PMLA), finding sufficient material to proceed against them.
Besides Malik, the accused are Zahoor Ahmed Shah Watali, Abdul Rashid Sheikh, Shabir Ahmad Shah, Naval Kishore Kapoor, M/s Trison Farms and Constructions Pvt Ltd, and Masarat Alam Bhat.
The court said there was prima facie sufficient material on record to raise strong suspicion against the accused and directed that they be charged under Section 3 of the PMLA, punishable under Section 4.
The Enforcement Directorate has alleged that proceeds of crime amounting to Rs 8,94,87,639 were generated and received through various channels. The agency claims the money originated from the Pakistani establishment and other groups and was used to support secessionist and subversive activities in Jammu and Kashmir.
How Were the Funds Allegedly Routed?
According to the ED’s investigation, the alleged proceeds of crime were received, transferred, concealed, possessed, acquired and used through different channels.
The agency alleges that cash couriers carried funds from the Pakistan High Commission in New Delhi to Hurriyat leaders, including Malik, for activities connected with secessionism in Jammu and Kashmir.
The ED’s case is linked to an NIA case registered in 2017 under Sections 120B, 121 and 121A of the Indian Penal Code and Sections 13, 16, 17, 18, 20, 38, 39 and 40 of the Unlawful Activities (Prevention) Act. The ED filed its complaint to trace the alleged proceeds of crime on June 14, 2017.
What Evidence Did the ED Rely On?
The ED relied on documents seized from Ghulam Mohd. Bhat, described as a cashier-accountant working with Zahoor Ahmed Shah Watali. According to the agency, the documents indicated that Malik, Shabir Ahmad Shah and Masarat Alam received foreign contributions through Watali during the 2015-16 financial year.
The agency also cited emails linked to Malik which, it alleged, showed that he had built an extensive global network to raise funds for terrorist, secessionist and unlawful activities in Jammu and Kashmir, projected as a freedom struggle.
The court also noted that the NIA’s second supplementary chargesheet recorded that Malik received Rs 15,75,595 from Saudi Arabia. Together with other amounts, he is alleged to have received Rs 30,75,595 in proceeds of crime generated through the alleged criminal activity and laundering.
What Happens Next in the Case?
The matter was listed on September 30 for the accused to physically appear and accept or deny the charges. Some could not be produced in person because of security concerns, following which the court directed the ED to obtain their signed charges while they remain in judicial custody.
The case has now been listed for October 30, 2026.
Special Public Prosecutors N.K. Matta, Simon Benjamin and Manish Jain appeared for the ED. Advocates Juhi Bhargava, Zahbi Tihami and Nishant Singh represented the accused.
The order moves the money-laundering proceedings to the stage of formal charges against the seven accused. The allegations concerning the source, movement and use of the funds will remain matters for adjudication as the proceedings continue before the Special NIA Court.
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