The Enforcement Directorate has provisionally attached a residential plot valued at ₹53.46 lakh in Sant Kabir Nagar, Uttar Pradesh, in its money laundering investigation involving former madrasa teacher Shamsul Huda Khan. The agency alleges Khan concealed his British citizenship while continuing to receive government-sponsored employment and benefits. According to the ED, ₹53.46 lakh in salary, pension and General Provident Fund payments were credited to his bank account by the Uttar Pradesh government. The agency is treating the alleged payments as proceeds of crime under the PMLA.
Ex-Madrasa Teacher’s ₹53.46 Lakh Property Attached by ED in Money Laundering Case
The Enforcement Directorate has provisionally attached a residential plot in Sant Kabir Nagar, alleging that the former madrasa teacher, Shamsul Huda Khan, concealed his British citizenship while availing government benefits.
The Enforcement Directorate has provisionally attached a residential plot worth Rs 53.46 lakh, giving a new twist to the Shamsul Huda Khan money laundering case.
The agency said the attached property measuring 189.75 square meters was located in Khalilabad, Sant Kabir Nagar, Uttar Pradesh, with ownership in Khan’s name.
The attachment has been made under the Prevention of Money Laundering Act, 2002, the ED said, after allegedly tracing government payments received by Khan to property acquisition.
The probe was launched on the basis of multiple FIRs registered by the Uttar Pradesh Police, pertaining to alleged cheating, forgery, use of forged documents and criminal conspiracy.
FIRs are registered under Section 419, 420, 467, 471 and 120-B of the Indian Penal Code and Section 318(4) of Bharatiya Nyaya Sanhita.
The ED said Khan got British citizenship on December 19, 2013, after which he ceased to be an Indian citizen as per the law in force.
The agency said Khan concealed his British citizenship and continued to assert he was an Indian citizen while he continued to hold government-sponsored jobs and benefits.
British citizenship and madrasa employment
“Khan continued to work as an assistant teacher in a government-aided madrasa in Mubarakpur in Azamgarh even after acquiring British citizenship, the ED said.
The Uttar Pradesh Minority Welfare and Waqf Department is reported to have conducted an inquiry and found that Khan’s service from 2007 to 2017 was not verified.
Khan was given voluntary retirement in 2017 and later began receiving regular pension benefits, though there was no verification, the Enforcement Directorate said.
The agency stated that ₹53.46 lakh was credited to Khan’s bank account by the Uttar Pradesh government for salary, pension and General Provident Fund payments.
The amount is considered by the ED as alleged proceeds of crime under PMLA, though the funds were later dissipated, it said.
The agency said it provisionally attached the Sant Kabir Nagar property registered in Khan’s name for realising the equivalent value.
The ED also alleged that Khan used his surrendered Indian passport, PAN, Aadhaar and voter ID documents to buy immovable properties in Sant Kabir Nagar.
These allegations are subject to an ongoing investigation, and the attachment of the property is provisional within the framework of the fight against money laundering.
Also Read: ED Raids Chandigarh, Mohali, Panchkula Jewellers in Money Laundering Case
February searches expanded the investigation
The latest move comes after the Enforcement Directorate conducted searches at properties linked to Khan and his family in Sant Kabir Nagar and Azamgarh on February 11, 2026.
In the course of these searches, investigators seized documents concerning 17 immovable properties, according to the agency’s version of the investigation.
The properties had a declared purchase value of about Rs 3 crore and their preliminary market valuation was pegged at over Rs 20 crore.
Investigators also found over Rs 5.5 crore in credits between 2007 and 2025 in four bank accounts linked to Khan and members of his family.
The accounts were associated with Khan, his wife, son and daughter-in-law and two non-government organisations, including the Raza Foundation, connected to the family.
The accounts were held in six banks, and investigators examined the movement and declared the purpose of funds deposited in the personal and organisational accounts.
ED examines NGO finances and property transactions
The Enforcement Directorate said it was investigating whether donations and assistance received through personal and NGO accounts were used for personal gain or to buy property.
The agency is also investigating the activities and finances of two NGOs linked to Khan as part of a broader probe into financial transactions.
The probe has thus widened to alleged financial flows, multiple properties, family-linked accounts and the workings of associated organisations apart from the ₹53.46 lakh property.
Sprouts News understands that the property attachment does not itself establish guilt at this stage, as the allegations are still being investigated and proceedings are under the PMLA.
The agency’s findings on Khan’s citizenship, employment records, government payments and property transactions are allegations made during the investigation.
Provisional attachment under the PMLA is meant to attach property suspected to be related to the proceeds of crime, and it is subject to the statutory adjudication process.
What happens next in the case
The ED probe is ongoing, and officials are looking at property records, banking transactions, government payments, and the financial transactions of the NGOs associated with the case.
Whether the allegations and identified assets survive scrutiny under the applicable provisions of the anti-money laundering law will be for further proceedings.
The Khalilabad plot of ₹53.46 lakh is the specific property provisionally attached by the ED in connection with the investigation.
Further clarity on the allegations against Khan’s citizenship, government benefits, and property transactions may come from other findings, adjudication proceedings, or developments in court.
