A Special NIA Court in New Delhi has ordered charges to be framed against Yasin Malik and six others under the Prevention of Money Laundering Act in a case concerning alleged foreign funding through hawala channels. The Enforcement Directorate has alleged that funds were routed through intermediaries and used for activities linked to the accused. The court found prima facie material creating reasonable suspicion sufficient to proceed with charges under PMLA Sections 3 and 4. The allegations will remain subject to the judicial process.
Yasin Malik Money Laundering Case Charges Framed Against Seven Over Alleged Hawala Funding
Special NIA Court in New Delhi has ordered charges to be framed against Yasin Malik and six others under PMLA for alleged foreign funding routed through hawala channels.
The Yasin Malik money laundering case proceedings advanced on October 1, 2026, after a Special NIA Court in New Delhi ordered charges against seven accused under PMLA.
The Enforcement Directorate has said foreign funds were received through hawala channels from the Pakistani establishment, and investigators have linked the alleged proceeds to secessionist and subversive activities.
The court found prima facie material to have reasonable suspicion against the accused and thus charges could be framed under section 3 of PMLA and punishment provided for under section 4.
The seven accused are Mohammad Yasin Malik, Zahoor Ahmad Shah Watali, Naval Kishore Kapoor, Shabir Ahmad Shah, Masarat Alam Bhat, Abdul Rashid Sheik and Trison Farms and Construction Pvt Ltd.
The accused include the jailed chief of the banned Jammu and Kashmir Liberation Front, Malik, and other separatist leaders named in the Enforcement Directorate’s money laundering investigation.
The ED case is based on a First Information Report (FIR) registered by the National Investigation Agency in 2017, which is the criminal case behind the financial investigation.
ED Details Alleged Hawala Funding Trail
The ED claimed that the money was received from various sources, including hawala deals and other means, and was meant to further the ideological agenda of the accused.
The agency said the cash couriers collected the money from the conduits of the Pakistan High Commission in New Delhi and then delivered the money to the Hurriyat leadership.
The ED has alleged that these funds were received by Yasin Malik and other Hurriyat-linked leaders for secession-related activities and for actions which investigators described as prejudicial to Indian law.
The agency's probe revealed alleged proceeds of crime of Rs 8,94,87,639, which it said were later received, routed, transferred, concealed, possessed, acquired or used by the accused.
The ED’s allegations suggest a complex financial trail involving several intermediaries and channels, with investigators claiming that the funds were routed through cash couriers and other conduits.
The Times of India separately reported court records as saying that an NIA supplementary chargesheet alleged that Malik received Rs 15,75,595 from Saudi Arabia during the course of the investigation.
The court also mentioned foreign funds of Rs 30,75,595 as alleged proceeds of crime linked to Malik, adding another dimension to the financial allegations, the same report said.
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Proceedings Continue Before Special NIA Court
The charges order came after perusal of material placed before Special NIA Judge Prashant Sharma, who noted that there was enough material available to raise strong suspicion against all seven accused.
The proceedings were scheduled for physical appearance on September 30 for the accused to accept or deny the charges, but some could not be produced due to security concerns.
The court had asked the Enforcement Directorate to take the signatures of the accused persons in judicial custody on the charge documents, news reports of the proceedings said.
Special Public Prosecutors N K Matta, Simon Benjamin and Manish Jain appeared for the Enforcement Directorate, whereas Juhi Bhargava appeared for Abdul Rashid Sheik in the proceedings.
According to reports of the proceedings in the court, Zahbi Tihami appeared for Shabir Ahmad Shah and Nishant Singh appeared as amicus curiae in the matter of Yasin Malik.
The next hearing will be on 30th October, at which procedural and substantive developments in the PMLA case will continue before the Special NIA Court.
The allegations are matters for judicial determination and are not findings of guilt. Sprouts News will continue to follow the proceedings as the court reviews the charges.
