A detailed investigation has revealed that the banned Islamic organization Popular Front of India (PFI) collected over ₹131 crore through illegal hawala and similar channels, which were allegedly used to fund activities aimed at disrupting national unity, according to findings cited by the Enforcement Directorate (ED) and other central agencies.
The Enforcement Directorate (ED) has provisionally attached eight immovable properties valued at ₹67.03 crore, all beneficially owned and controlled by the banned Islamic organisation Popular Front of India (PFI). These assets, held in the name of multiple charitable trusts and PFI’s political arm, the Social Democratic Party of India (SDPI), are suspected to have been acquired using funds raised through illegal hawala transactions, foreign donations, and domestic collections.
With this latest attachment, the total value of assets frozen in the PFI money laundering case has now risen to ₹129 crore, according to a press release issued by the ED Headquarters on 8 November 2025. The action follows a series of coordinated investigations led by the ED, National Investigation Agency (NIA), and state police units, which have together uncovered a vast network of illegal fundraising and terror financing operations spanning multiple Indian states and foreign territories.
₹131 Crore in Hawala Funds Raised for Terror Activities
Investigations have revealed that the PFI and its associates collected over ₹131 crore through hawala and similar illegal channels, both from within India and from abroad. The proceeds of crime, the ED said, were used to finance terrorist activities, train cadres, and purchase property in furtherance of a larger conspiracy to establish an “Islamic Nation” in India, threatening the country’s unity and secular fabric.
The investigation began on the basis of multiple FIRs registered by the NIA and state law enforcement agencies, under the Unlawful Activities (Prevention) Act (UAPA) and the Prevention of Money Laundering Act (PMLA), 2002.
According to ED officials, PFI functionaries, members, and office bearers were found to be raising funds through banking channels, hawala networks, and donations under the guise of charitable, educational, and social service activities. These funds were then diverted toward illegal and terror-linked operations.
Link Between PFI and SDPI: Secret Financial Network
The probe established that the Social Democratic Party of India (SDPI) served as the political wing of PFI, with both organisations sharing personnel, funds, and infrastructure.
ED records show that PFI directly controlled SDPI’s decision-making, including candidate selection, cadre mobilisation, and event funding. Secret diaries seized during searches revealed off-the-book financial transactions and cash transfers from PFI to SDPI that were not reflected in official accounts.
Investigators said large amounts of money were remitted from Gulf countries under the pretext of relief and welfare programmes, but were ultimately channelled into PFI-SDPI’s joint operations in India.
Properties Held Under Benami Foundations and Trusts
The ED said PFI operated a complex web of front foundations and charitable trusts to conceal ownership of assets. Many of these trusts were established by PFI leaders who were former members of Jamaat-e-Islami and its student wing, SIMI (Students Islamic Movement of India), both banned by the Government of India.
The PFI’s organisational lineage traces back to the National Development Front (NDF), formed in Kerala after the ban on Jamaat-e-Islami post the Babri Masjid demolition. As Jamaat’s properties were seized under UAPA, its successors reportedly formed new trusts to accumulate wealth under different names, continuing their ideological operations through new channels.
Seized documents from ED raids revealed:
- Detailed property and financial records maintained across multiple states.
- Properties registered under the names of various trusts, individuals, and shell entities linked to PFI.
- Financial audits, sale deeds, and land surveys indicating centralised control.
- Unaccounted cash expenditures recorded only in private ledgers.
PFI’s Physical Training Centres and “Jihadist” Activities
The ED further disclosed that PFI had conducted Physical Education (PE) training and combat instruction on several properties under its control. Training was reportedly held at locations such as Valluvanad House in Pattambi and Malabar House (Haritham Foundation) in Malappuram, both of which are among the newly attached assets.
According to the ED, these sessions involved offensive and defensive combat drills using weapons and were “aimed at preparing cadres for jihadist activities and unlawful acts.”
Properties Attached on 6 November 2025
In the latest attachment under the PMLA, the ED froze eight immovable properties worth ₹67.03 crore located across Kerala and Tamil Nadu. The assets belong to:
- Green Valley Foundation
- Alappuzha Social Cultural & Education Trust
- Pandalam Educational and Cultural Trust, Pathanamthitta
- Islamic Centre Trust, Wayanad
- Haritham Foundation, Poovanchina, Malappuram
- Periyar Valley Charitable Trust, Aluva
- Vallavunad Trust, Palakkad
- Land owned by the Social Democratic Party of India (SDPI), Thiruvananthapuram
Earlier, the ED had issued nine Provisional Attachment Orders (PAOs) worth ₹61.98 crore, all of which were confirmed by the Adjudicating Authority under PMLA.
It is noteworthy that the Green Valley Academy in Manjeri, Malappuram, operated by the Green Valley Foundation, was one of the Popular Front of India’s (PFI) oldest and largest arms and physical training centres, established in 1994 under the National Development Front (NDF). In August 2023, the NIA found it was used to train PFI cadres in weapons handling, explosives, and radical indoctrination, while posing as an educational institution. Spread across 10 hectares, it also served as a hideout for PFI’s “Service Wing” members involved in murders and terror-related crimes. The NIA has since attached the property under the UAPA, along with several other PFI-linked training centres across Kerala.
Arrests and Prosecutions
So far, 28 leaders, members, and cadres of PFI have been arrested by the ED. Among them are:
- SDPI National President MK Faizy,
- Members of PFI’s National and State Executive Councils, and
- Physical Education trainers involved in the organisation’s weapons training programs.
Multiple prosecution complaints have been filed before special PMLA courts, detailing how the group collected funds, purchased assets, and channelled resources toward radicalisation and violence.
Expansion to Tamil Nadu and Cross-Border Funding
The ED has also found evidence that PFI’s network expanded beyond Kerala into Tamil Nadu, where several benami foundations were set up to collect foreign funds for operations linked to terror financing. These entities reportedly received contributions from overseas donors under the pretext of education and healthcare outreach, later used to sustain the organisation’s underground activities.
Information gathered during the probe has revealed connections to 28 individuals already arrested in PFI-related cases across the country, as reported by Dinamalar. Many of these fronts were found to be documenting charitable projects and sending reports abroad to attract donations which were then diverted for unlawfulpurposes.
Background and Ongoing Probe
The Popular Front of India (PFI) was banned by the Government of India in 2022 under the Unlawful Activities (Prevention) Act (UAPA) for its alleged involvement in anti-national, terror-linked, and extremist activities.
With fresh attachments now in place and multiple prosecutions pending, further investigation is underway to trace additional properties, foreign funding routes, and the extent of PFI-SDPI’s financial operations across India and abroad.
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