Delhi Court Orders Framing Of PMLA Charges Against Yasin Malik, 6 Others In Terror Funding Case

The accused are alleged to have generated and received proceeds of crime amounting to Rs 8,94,87,639. Besides Malik, those charged are Zahoor Ahmed Shah Watali, Abdul Rashid Sheikh, Shabir Ahmad Shah, Naval Kishore Kapoor, M/s Trison Farms and Constructions Pvt Ltd, and Masarat Alam Bhat. The Enforcement Directorate (ED) alleges the funds were received from the Pakistani establishment and other groups through various channels to promote secessionist ideology and subversive activities.

Special NIA Judge Prashant Sharma of Patiala House Court passed the order directing framing of charges against all seven on September 9. The order records: "I conclude that prima facie, there is sufficient material on record based upon which strong suspicion is raised against all seven accused persons, namely Zahoor Ahmad Shah Watali, Naval Kishore Kapoor, M/s Trison Farms and Constructions Pvt Ltd, Mohd. Yasin Malik, Shabir Ahmad Shah, Masarat Alam and Abdul Rashid Sheikh, for which said accused persons have to be charged with offence u/sec. 3 of PMLA, punishable u/sec. 4 of PMLA."

According to the ED's investigation, the proceeds of crime were allegedly received, transferred, concealed, possessed, acquired and used by the accused through various channels. The agency alleges the funds were routed by cash couriers from the Pakistan High Commission in New Delhi to the Hurriyat leadership, including Malik, to support subversive activities and the secession of Jammu and Kashmir.

The ED's case is linked to an NIA case originally registered in 2017, invoking Sections 120B, 121 and 121A of the Indian Penal Code and Sections 13, 16, 17, 18, 20, 38, 39 and 40 of the Unlawful Activities (Prevention) Act. The ED filed its complaint to trace the proceeds of crime on June 14, 2017. The agency's case describes Malik as having headed the Jammu & Kashmir Liberation Front (JKLF) and as having been involved in terrorist and subversive activities in Jammu and Kashmir since the 1990s.

The ED's case draws on documents seized from Ghulam Mohd. Bhat, described as a cashier-accountant working with Zahoor Ahmed Shah Watali, which the agency says indicate that Malik, Shabir Ahmad Shah and Masarat Alam received foreign contributions through Watali during the 2015–16 financial year. The ED also cites emails linked to Malik that it says show he built an extensive global network to raise funds for what the agency describes as terrorist, secessionist and unlawful activities in Jammu and Kashmir, projected as a freedom struggle, with the funds allegedly sustaining the JKLF and intensifying secessionist violence in the region.

The Court also noted that the NIA's second supplementary chargesheet recorded that Malik received Rs 15,75,595 from Saudi Arabia. Taken together with other amounts, Malik is alleged to have received a total of Rs 30,75,595 in proceeds of crime generated through the alleged criminal activity and laundering.

The matter was listed on September 30 for the accused to physically appear and accept or deny the charges. Some of the accused could not be produced in person owing to security concerns, and the Court has directed the ED to obtain their signed charges while they remain in judicial custody. The case has been listed next for October 30, 2026.

Special Public Prosecutors N.K. Matta, Simon Benjamin and Manish Jain appeared for the ED, while Advocates Juhi Bhargava, Zahbi Tihami and Nishant Singh represented the accused.