ED Books Former Madrassa Teacher for Fraudulent Salary Withdrawal and Suspected Foreign Links While Living in UK
Maulana Shamsul Huda Khan accused of drawing UP government salary for a decade while abroad
ED alleges ₹33 crore assets, foreign funding misuse, and links with Pakistan-based religious networks
By Our Legal Correspondent
New Delhi: December 26, 2025:
In one of the most extraordinary cases of alleged fraud and administrative failure, the Enforcement Directorate (ED) has registered a case under the Prevention of Money Laundering Act (PMLA) against Maulana Shamsul Huda Khan, a government-recognised madrassa teacher from Azamgarh, Uttar Pradesh.
According to ED officials, Khan fraudulently drew salary and retirement benefits from the Uttar Pradesh government for nearly a decade while residing in the United Kingdom, where he acquired British citizenship. He is also accused of nurturing links with Pakistan-based religious networks and amassing wealth far beyond his known sources of income.
Details of the Alleged Crime
Authorities allege that:
- Fraudulent Salary Withdrawal: Despite living abroad, Khan continued to draw salary and retirement benefits as a madrassa teacher in Uttar Pradesh.
- Foreign Citizenship Concealed: He acquired British citizenship but did not disclose this to Indian authorities, continuing to claim government benefits.
- Suspicious Wealth Accumulation: ED sources claim he amassed properties worth ₹33 crore and cash worth ₹5 crore from suspicious entities.
- Foreign Funding Misuse: Investigations suggest misuse of NGO structures and suspected foreign funding routed through madrassas.
- Ideological Influence Operations: Authorities flagged concerns about his alleged links with Pakistan-based religious networks and ideological influence in eastern Uttar Pradesh.
The case was initiated following multiple FIRs, an Anti-Terrorism Squad (ATS) probe, and a detailed reference sent by police authorities in Sant Kabir Nagar, which highlighted suspected foreign funding and misuse of madrassa education frameworks.
Court and Administrative Observations
Officials described the case as “one of the most extraordinary instances of administrative collusion and systemic breakdown” in the state’s madrassa education system.
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The allegations point to:
- Failure of oversight by the education department in monitoring teacher postings and salary disbursement.
- Weak checks in verifying whether government employees were physically present and performing duties.
- Potential collusion between local officials and Khan, enabling him to continue drawing salary despite living abroad.
Wider Legal Context
The case falls under the ambit of the Prevention of Money Laundering Act (PMLA), which empowers the ED to investigate and attach properties acquired through proceeds of crime.
- Section 3 of PMLA: Defines money laundering as directly or indirectly attempting to indulge or knowingly assisting in processes connected with proceeds of crime.
- Section 5 of PMLA: Allows provisional attachment of properties suspected to be acquired through illegal means.
- Section 8 of PMLA: Provides for adjudication and confiscation of attached properties.
If proven, Khan could face severe penalties, including confiscation of assets and imprisonment.
Why This Case Matters
The case has major implications:
- For Governance
- Highlights lapse in monitoring government employees.
- Exposes vulnerabilities in salary disbursement systems.
- For Education System
- Raises questions about misuse of madrassa education funds.
- Calls for stricter oversight of religious institutions receiving government support.
- For National Security
- Alleged links with Pakistan-based religious networks raise concerns about ideological influence and radicalisation.
- Shows how foreign funding can be misused under the guise of education.
- For Law Enforcement
- Demonstrates coordination between ATS, local police, and ED in tackling complex cases.
- Sets precedent for investigating fraudulent government employees living abroad.
Lessons for Investors and Citizens
The case offers broader lessons:
- For Government Employees: Fraudulent withdrawal of salary and concealment of foreign citizenship can lead to severe legal consequences.
- For Citizens: Transparency and accountability in public institutions are critical to prevent misuse of taxpayer money.
- For Policymakers: Need to strengthen monitoring mechanisms, especially in sensitive sectors like education and religious institutions.
Conclusion
The ED’s case against Maulana Shamsul Huda Khan is a stark reminder of how systemic loopholes can be exploited for personal gain. By allegedly drawing salary and retirement benefits while living abroad, amassing suspicious wealth, and nurturing foreign links, Khan’s actions represent a serious breach of trust and governance.
The Allahabad High Court’s ruling in similar cases and the ED’s investigation under PMLA highlight the importance of strict enforcement and oversight. For India’s education system and governance, this case is a wake-up call to strengthen accountability, prevent misuse of funds, and protect national security.
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