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ED Busts Multinational Terror Funding Network Linked To PFI & SDPI
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The operation ran a shadow economy that facilitated the movement of over Rs 62 crore to finance illegal activities, including terror training and mobilising citizens against India
The Enforcement Directorate (ED) has uncovered a massive criminal network orchestrated by the Popular Front of India (PFI) and its political arm, the Social Democratic Party of India (SDPI), following a lengthy investigation that exposed their involvement in financing terrorist training, communal unrest, and radicalisation activities across India.
According to sources within the ED, the criminal operation ran a shadow economy that facilitated the movement of over Rs 62 crore in illicit funds, which were funnelled through a web of fraudulent financial practices, fake trusts, underground Hawala networks, and a dedicated chain of operatives. The network, with both domestic and international connections, was strategically built to finance illegal activities, including terror training, communal violence, and mobilising citizens against the Indian state.
MK Faizy: The Mastermind Behind the Operation
At the heart of this extensive conspiracy lies MK Faizy, the National President of SDPI and a member of the National Executive Council (NEC) of PFI. According to the ED investigation, Faizy was the mastermind behind the financial operations of SDPI, playing a pivotal role in orchestrating PFI's underground economy. His position allowed him to mobilise funds both domestically and internationally, especially from Gulf nations such as Qatar and UAE, where a significant portion of the illicit funds originated.
Faizy personally oversaw the fundraising efforts, which included cash donations, cadre fees, and money laundering through SDPI's organisational bank accounts. ED sources revealed that Faizy personally handled Rs 15.4 lakh in illicit funds through HDFC Bank, disguising it as legitimate political income. These funds were then redirected to support violent riots, murder plots, and radical training camps, including several notorious terror-linked operations.
Faizy's central role within SDPI and his direct involvement in terror financing has led the ED to label him as the primary architect of a sophisticated, transnational terror financing network.
Faizy's operations were further bolstered by his close associate Wahidur Rahman, who managed field operations and controlled the actual cash channels used to funnel funds through party sympathisers. Rahman coordinated with various operatives to move illicit money, ensuring its effective use in SDPI's physical operations, including acts of violence and destabilising protests.
Rauf Sherif, a crucial player in the network, headed the Campus Front of India (CFI), which is linked to PFI's student front. Sherif played a significant role in channelling funds from abroad through Shafeeque Payeth, a key operator based in Doha. Payeth's operations in the Gulf were integral to the transfer of cash from overseas donors into SDPI's hands.
In addition, Ashraf MK and Abdul Razak were pivotal in converting illicit funds into real estate and property, further laundering the money into legitimate assets. The SDPI state units across various regions were also involved in hoarding and laundering the money, acting as crucial storage points for the criminal funds.
The investigation also revealed Rasheed and Kunju, two operatives linked to SDPI, who were directly involved in physical crimes funded by SDPI. These individuals were integral to the violent operations on the ground, executing plans for communal violence, and engaging in illegal acts designed to fuel unrest and radicalisation across Indian states.
Well-Organised Transnational Conspiracy
The case has unravelled a carefully coordinated and expansive network of radicalisation and terror financing, which operated not only through domestic channels but also extended across borders. The SDPI-PFI nexus, through its transnational network, sought to utilise political and civil liberties infrastructure to further their ideological war against the Indian state. They exploited legal avenues, including using their political party status and social activism fronts, to mask their true intentions—funding terrorism and radicalisation efforts.
The network used underground hawala networks, illegal cash donations, and fraudulent financial practices to raise money from sympathisers abroad, while simultaneously using the SDPI's political influence to create public disturbances, thereby feeding into their larger goal of sowing discord and instability within the nation.
Following the unearthing of this network, the Enforcement Directorate has initiated a series of actions, including freezing accounts, seizing properties linked to illicit transactions, and interrogating key members of PFI and SDPI. The investigation is ongoing, with the ED planning to expand the probe into the wider network of international financiers and operatives involved.
Sources close to ED have stated that further arrests and more seizures are expected as the investigation deepens, and international cooperation may be sought to bring to justice those operating from foreign territories, particularly the Gulf countries, which have emerged as key nodes in the funding network.
About the Author
Manoj Gupta
Group Editor, Investigations & Security Affairs, Network18
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Location :
New Delhi, India, India
First Published:
June 21, 2025, 12:06 IST
