The Enforcement Directorate (ED) has filed a case against 26 individuals, including leaders of the banned Popular Front of India (PFI), for funneling fake currency and hawala money centered in Malappuram. This has brought to light the extensive network of counterfeit and hawala transactions that have been occurring in the Malappuram and Manjeri regions.
Among the accused, five are co-accused in the infamous case involving Siddique Kappan. The ED is currently tracing the financial links of how money was funneled into India via the Popular Front and stored in Malappuram. Approximately 13,000 PFI members have acted as links in this hawala operation, with their bank accounts being misused for the hawala transactions. The actual amount of money involved is expected to be revealed soon, and the number of accused is likely to increase.
In connection with the hawala money case, the ED has already identified and attached assets worth ₹62 crore related to the Popular Front, which include properties alleged to be connected to religious conversion centers in Malappuram and Manjeri.
The investigation into the hawala case began with the arrest of Siddique Kappan, an accused in the Hathras communal riot case. Kappan was arrested by UP police on October 5, 2020. During the questioning by the ED while Kappan was in jail, information came to light about Rouf Sherif, a native of Anchal and the general secretary of the Campus Front, who had sent money to the Hathras mission. When the ED issued a notice for Rouf to appear at their Delhi office, he claimed he had COVID-19 and avoided appearing. Fearing arrest, Rouf attempted to flee to the Gulf but was arrested by the ED at Thiruvananthapuram airport on December 12, 2020.
Of the 26 accused in the hawala case, five are co-accused in Siddique Kappan’s case. During detailed questioning of the mastermind Rouf, the connections of the PFI’s hawala network began to unravel. It was revealed that money had been sent to India through the NRI accounts of 13,000 PFI workers in Gulf countries. The ED has been monitoring these Gulf accounts, which has led to a heightened scrutiny of PFI’s involvement in gold smuggling.
Rouf’s testimony was crucial, stating that PFI leaders Abdul Razak and M.K. Ashraf had received money in their business accounts. The ED, secretly monitoring these individuals, discovered clandestine methods used by PFI for fund investment. Both Abdul Razak was arrested in March 2022 and M.K. Ashraf in April. Investments from PFI funds ranged from real estate to a dance bar in Dubai.
