Enforcement Directorate officers on Thursday searched the residence of British citizen Maulana Shamshul Huda in Uttar Pradesh’s Sant Kabir Nagar district as part of an investigation into alleged foreign funding violations.A team from the agency’s Lucknow zonal office reached Raza Manzil in the Meat Mandi area of Khalilabad early in the morning, accompanied by personnel from the Central Reserve Police Force. Arriving in three vehicles, officials conducted a search operation that continued until evening, examining documents and electronic devices and questioning members of the cleric’s family present at the premises.
Officials familiar with the matter said the action forms part of a broader probe into suspected irregularities in the receipt and utilisation of overseas funds. The investigation is understood to be examining whether provisions of the Foreign Contribution Act, which governs the acceptance and use of foreign donations in the country, were breached. Authorities have not disclosed the exact quantum of funds under scrutiny or the time period being examined.
During the search, officers reportedly recorded statements from the Maulana’s wife and daughter-in-law and scrutinised financial records, bank statements and other papers related to charitable or religious activities. No immediate arrests were reported by late evening, and the agency did not issue a detailed public statement outlining specific allegations against Huda.
Residents in Khalilabad said the presence of central investigators and paramilitary personnel drew a crowd outside the property, although security was maintained and access to the immediate vicinity was restricted. Local police were also seen coordinating with central forces to manage the situation and prevent disruption.
The Enforcement Directorate, which functions under the Department of Revenue in the Union Finance Ministry, has stepped up investigations into suspected foreign funding violations in recent years. The agency has previously acted against non-governmental organisations, educational institutions and religious bodies over alleged non-compliance with FCRA norms, including failure to report donations, diversion of funds, or utilisation of money for purposes not permitted under law.
Legal experts note that under the FCRA framework, organisations and individuals receiving foreign contributions must be registered and must ensure that funds are used strictly for the stated objectives. Any deviation can attract penalties, including cancellation of registration, monetary fines and, in certain cases, prosecution under the Prevention of Money Laundering Act if proceeds of crime are suspected.
It remains unclear in this case whether the probe originated from intelligence inputs, financial transaction monitoring, or information shared by another investigative body. Enforcement Directorate inquiries typically follow preliminary findings by other agencies or arise from suspicious transaction reports flagged by financial institutions.
Community leaders in Sant Kabir Nagar described Huda as a religious figure with local influence, though details of his organisational affiliations and activities were not immediately available in official records. Some residents expressed surprise at the scale of the operation, while others said that investigative agencies should be allowed to complete their work before drawing conclusions.
Observers point out that foreign funding investigations often intersect with sensitive issues involving religious institutions and charitable trusts. Authorities have maintained that enforcement actions are guided by statutory mandates rather than political considerations. At the same time, civil society groups have, in the past, raised concerns about the impact of regulatory scrutiny on the functioning of faith-based and voluntary organisations.
Data from parliamentary replies and official disclosures over the past few years show a significant number of FCRA registrations either cancelled or suspended for non-compliance. The government has argued that tighter oversight is necessary to ensure transparency and prevent misuse of foreign contributions, especially in sectors involving education, health and religious outreach.
In Uttar Pradesh, several cases linked to alleged financial irregularities have been investigated by central agencies, reflecting a broader pattern of enforcement activity across multiple states. Sant Kabir Nagar, a district carved out in 1997 and named after the 15th-century poet-saint Kabir, has not previously been known as a focal point for high-profile financial probes, making Thursday’s operation notable in the local context.
Senior officials declined to comment on whether further searches or summonses are planned in connection with the case. Under established procedure, documents and digital evidence seized during such raids are analysed before decisions are taken on issuing notices, filing prosecution complaints, or attaching properties if proceeds of crime are established.