ED Files Money-Laundering Case After Drug-Trade Probe in Srinagar

The Enforcement Directorate (ED) has filed a fresh money-laundering case against Srinagar-based accused Abdul Momin Peer and his wife Syed Sadaf Andrabi, involving alleged proceeds from drug trafficking — possibly linked to terror funding. The agency has provisionally attached a house in Srinagar’s Bemina area, valued at around ₹1.5 crore, as part of its investigation under the Prevention of Money Laundering Act (PMLA). 

How the Case Unfolded

According to the ED, the investigation traces back to an FIR and chargesheet filed by the National Investigation Agency (NIA) against Peer, after he was arrested by Jammu & Kashmir Police at a checkpoint with 6 kg heroin and ₹20 lakh in cash. Subsequent raids by NIA and police on his associates reportedly recovered additional seizures — ₹1.15 crore in cash and 15 kg of heroin. 

ED claims that Peer and his associates — identified as relatives and intermediaries including persons named Islam-Ul-Haq Peer, Syed Iftikhar Andrabi and Syed Saleem Andrabi — have for long operated a drug-trafficking network. Their illicit trade allegedly generated proceeds that were laundered through properties and front entities. 

Property Attachment: House in Bemina Seized

As part of its PMLA-driven probe, ED issued a provisional attachment order for a residential house in Bemina, Srinagar — believed to have been purchased using money generated from illegal drug trafficking. The property was reportedly registered in the name of Peer’s wife, Syed Sadaf Andrabi. 

According to the attached agency statement, this seizure aims to prevent dissipation or transfer of illicit proceeds while the money-laundering case is under investigation. The move marks a significant escalation in the probe, signalling that ED is targeting not only traffickers but also the financial and real-estate networks allegedly sustaining criminal and terror-linked operations. 

Broader Implications: Drug Trade, Terror Funding and Money Laundering Nexus

The case underscores a grim linkage — trafficking in narcotics, illicit cash flows, terror financing and real-estate laundering. By connecting drug seizures to large real-estate acquisitions, ED seeks to dismantle a multifaceted criminal network that allegedly uses drugs as one funding source for terror-related activities in Jammu & Kashmir. 

Officials say the probe remains active: all bank records, financial transactions, property documents, and communication logs are being scrutinized to map the full extent of the network. The agency is also expected to widen the net to include associated persons and front-organizations. 

What Could Happen Next — Legal Action & Asset Forfeiture

If investigators succeed in proving that the property and assets were acquired using proceeds from illicit drug trade, the accused may face charges under PMLA — potentially including confiscation of assets, imprisonment, and long-term legal consequences. The seized property may be seized permanently once adjudication completes. 

Given the alleged links to terror-financing, the case could also involve investigations under anti-terror laws — with corresponding national-security scrutiny if any foreign or cross-border funding connections are unearthed.

Why This Case Matters

This action by ED reflects growing vigilance against “layered crime” — where drug-trafficking, money-laundering and terror financing are not isolated acts but parts of an integrated criminal network. By targeting money trails, the agency aims to choke not just the supply side (drugs), but the financial underpinnings (proceeds) — making enforcement more comprehensive.

For the public and investors, the case serves as a warning: properties purchased with dubious funds — even in remote or conflict-affected regions — can be seized. Transparency, compliance and vigilance matter.

For more updates on financial-crime investigations, money-laundering cases, and regulatory enforcement across India, stay with Accounting firms in India — where we decode complex crime and compliance stories with clarity and insight.