UK man charged in madrassa funds case; 22 accounts with nearly Rs 1 crore frozen

Lucknow: The Sant Kabir Nagar police has filed a chargesheet against British citizen Shamsul Huda Khan and his son Tausif Raza Khan, alleging that they collected donations for an unregistered madrassa through NRI contributors, and diverted a part of the funds for personal use.The accused also concealed the patron’s British nationality and violated provisions of the Foreign Exchange Management Act (FEMA), 1999.Police have also recommended that the Enforcement Directorate should examine financial transactions for alleged FEMA violations.The chargesheet has been filed in a case registered at Kotwali Khalilabad police station under sections 318(4) (cheating) and 61 of the Bharatiya Nyaya Sanhita (BNS) and Section 13 of the Foreign Exchange Management Act, 1999.The investigation stemmed from an inquiry conducted by the anti-terrorist squad (ATS), Varanasi, whose findings formed the basis for registration of the FIR.According to the chargesheet, investigators froze 22 bank accounts linked to Shamsul Huda Khan, his son and other family members.Nearly Rs 1 crore lying in these accounts has been placed under debit freeze pending investigation.According to the chargesheet, the ATS inquiry alleged that Shamsul Huda Khan, patron of madrassa Kulliyatul Banatir Razvia Niswan in Sant Kabir Nagar, mobilised foreign donations through overseas associates for the madrassa and the Raza Foundation. Police incorporated the ATS findings into the investigation.A detailed analysis of the madrassa’s bank accounts revealed that substantial donations were received from NRI contributors residing in the United Kingdom, Turkey (Istanbul), Qatar (Doha), the United Arab Emirates, Australia and the Netherlands.While investigators did not find direct remittances from foreign institutional accounts into the madrassa or NGO, the chargesheet alleges that overseas funds were routed through NRI contributors before reaching the institution.Investigators claimed that donations collected in the name of the madrassa were not used entirely for educational or charitable purposes and a part of the money was allegedly utilised for purchase of land and construction of residential buildings.The chargesheet said that Shamsul Huda Khan concealed his British citizenship while renewing the madrassa’s registration.Investigators said that Huda lived in the United Kingdom between 2007 and 2017 and acquired British citizenship in 2013 but did not disclose this fact during the renewal of madrassa’s registration.Police alleged that the madrassa was not registered under the Foreign Contribution (Regulation) Act (FCRA) despite allegedly receiving foreign-linked donations through NRI channels.According to the chargesheet, the institution’s Know Your Customer (KYC) documents submitted to banks merely said that FCRA registration would be obtained, if required.The chargesheet also names Huda’s son Tausif Raza Khan as a co-accused, alleging that he operated several bank accounts linked to the family and handled financial transactions.Get the latest City News and Live updates. Download the TOI app.You Can Also Check: Gold Rate in Lucknow | Silver Rate in Lucknow | Bank Holidays in Lucknow | Public Holidays in Lucknow | Lucknow AQI | Weather in Lucknow | Petrol Price in Lucknow | Diesel Price in Lucknow | CNG Price in Lucknow | LPG Price in LucknowStay updated with the latest Lucknow news. Download the TOI App.