ED Raids 40 Locations in ISIS-Linked Terror Financing Case

Mumbai / New Delhi: The Directorate of Enforcement (ED) has intensified its crackdown on terror financing networks after carrying out coordinated search operations at 40 locations across multiple states in connection with an ISIS-linked extremist module. The searches, conducted on December 11 under the Prevention of Money Laundering Act (PMLA), 2002, targeted premises linked to accused persons and their financial associates.

The operation was led by the Mumbai Zonal Office of the ED and covered locations in the Padgha–Borivali belt near Mumbai, as well as Delhi, Kolkata, Hazaribagh, Prayagraj, Daman and Ratnagiri. Officials said the action is part of an ongoing probe into the laundering of funds used to support terrorist recruitment, training and logistics.

₹9.70 Crore in Cash and Gold Seized

During the searches, the ED seized movable assets worth approximately ₹9.70 crore, including ₹3.70 crore in cash and gold jewellery and bullion valued at around ₹6 crore. In addition, 25 bank accounts linked to the accused and suspected associates were frozen.

Investigators also recovered digital devices, financial records, radical literature and documents related to immovable properties believed to have been acquired using proceeds of crime. These materials are now under forensic examination to establish money trails and ownership patterns.

Probe Triggered by NIA Terror Case

The money laundering investigation was initiated based on FIRs and charge sheets filed by the National Investigation Agency (NIA) in case RC-29/2023/NIA/DLI. The NIA case was registered under provisions of the IPC, the Unlawful Activities (Prevention) Act (UAPA) and the Explosive Substances Act.

According to investigators, the accused were part of a highly radicalised ISIS-linked module allegedly involved in recruitment, indoctrination, weapons procurement and fund mobilisation for extremist activities. Financial scrutiny revealed structured efforts to conceal and layer funds generated from illegal operations.

Illegal Activities Used to Fund Extremism

Intelligence shared by the Mumbai Anti-Terrorism Squad (ATS) indicated that members of the module were engaged in unlawful revenue-generating activities to finance terror operations. These included the illegal cutting, smuggling and sale of Khair (Kaith) wood from protected forest areas.

Officials said proceeds from these activities were systematically diverted through bank accounts and informal channels, highlighting how environmental crimes are increasingly being exploited to fund extremist networks.

Hawala Links and Financial Layering Uncovered

Detailed analysis of bank transactions uncovered monetary linkages between key accused and several associates. The ED also found evidence pointing to hawala-based fund transfers used to bypass formal banking systems and obscure the origin of funds.

Such layered financial structures often require deep forensic scrutiny similar to practices followed in auditing services in India, where transaction mapping and anomaly detection play a critical role in uncovering concealed financial relationships.

Kattha Industry Angle Under Scanner

Further investigation revealed that individuals linked to the Borivali–Padgha module were allegedly supplying illegally sourced Khair wood to entities involved in kattha production. Searches were therefore extended to premises connected with businesses suspected of procuring forest produce without valid authorisation.

During the operation, stockpiles of Khair wood believed to have been illegally sourced were recovered, and the matter was referred to the jurisdictional Forest Department for action under relevant environmental laws.

Investigation Ongoing

ED officials said the agency remains focused on dismantling terror financing ecosystems by targeting both revenue sources and laundering mechanisms. Further action is expected as investigators examine financial records, digital evidence and cross-border linkages associated with the module.