ED Conducts Raids in JIIU Foreign Funding Investigation

ED Raids Multiple Locations in JIIU Foreign Funding Investigation

The Enforcement Directorate (ED) has carried out coordinated raids across Nandurbar, Mumbai, and Barmer as part of its expanding investigation into alleged irregular foreign funding received by institutions linked to the Jamia Islamia Ishatul Uloom (JIIU) network.

According to officials, the searches were initiated after evidence suggested that certain funds from abroad were routed into India through non-transparent channels and possibly diverted for purposes not declared in official filings.

What Triggered the Investigation

Authorities are examining whether:

• Foreign contributions were received without mandatory approvals

• The money was diverted to non-educational or unauthorized activities

• Shell entities or informal channels were used to layer the funds

• Financial records were manipulated to mask the final beneficiaries

Preliminary findings reportedly indicate discrepancies between declared financial inflows and actual transactions observed during forensic examination of accounts.

Locations Targeted in the Raids

Nandurbar (Maharashtra)

Key premises associated with JIIU’s educational operations were searched for documents, computers, financial papers, donation ledgers, and property records.

Mumbai (Maharashtra)

ED teams focused on suspected intermediaries and entities believed to have facilitated fund transfers, including individuals who handled overseas communication or financial coordination.

Barmer (Rajasthan)

Searches targeted premises allegedly linked to cross-border fund routing, with investigators examining whether informal networks were used to channel foreign contributions.

Across all three locations, multiple digital devices, account books, and transaction logs have been taken for forensic audit.

Focus Areas of the ED Inquiry

The investigation is centered on determining:

• Compliance with FCRA and PMLA norms

• Source of foreign donations and their declared purpose

• Mismatch between received funds and actual operational expenditure

• Transfers to individuals or entities with no legitimate association

Officials believe the suspected irregularities may involve layering and diversion, a pattern often seen in money-laundering operations.

Potential Violations Being Examined

The ED is looking into possible violations involving:

• Unexplained foreign receipts

• Misuse of educational or charitable status

• Acquisition of properties using undeclared funds

• Structuring of donations to avoid reporting obligations

If confirmed, these actions could fall under offences relating to money laundering, illicit foreign funding, and fraudulent accounting.

What Happens Next

The seized records will undergo detailed scrutiny.
Further summons, questioning, and additional raids may follow based on the findings.

The ED may also:

• Freeze bank accounts linked to suspicious transfers

• Identify overseas contributors involved

• Expand the investigation to collaborators or facilitators in other states

A formal prosecution complaint under PMLA may be filed once the financial trail is fully mapped.

Shunyatax Global Perspective

The multi-state action reflects India’s increasingly stringent stance on foreign funding compliance and financial transparency, especially for institutions operating in education, charity, and social-service sectors.

As global financial flows become more complex, regulatory authorities are tightening oversight to prevent misuse, diversion, and laundering of funds. Shunyatax Global continues to monitor such enforcement trends closely, delivering timely insights into financial crime, compliance risks, and regulatory developments.

For more expert updates, stay connected with Shunyatax Global Services.