The Covert Funding War: How Foreign Cash, Fake Fronts, Hawala Were Used Against India | Exclusive
News india The Covert Funding War: How Foreign Cash, Fake Fronts, Hawala Were Used Against India | Exclusive The Covert Funding War: How Foreign Cash
News india The Covert Funding War: How Foreign Cash, Fake Fronts, Hawala Were Used Against India | Exclusive The Covert Funding War: How Foreign Cash, Fake Fronts, Hawala Were Used Against India | Exclusive Reported By, Last Updated: August 07, 2026, 16:02 IST From foreign donations to hawala cash, agencies have uncovered alleged funding networks using NGO and charity fronts to fuel radicalisation, conversions and anti-India activities Rapid Read Foreign cash, charity fronts and hawala operators formed the alleged financial backbone of networks now under investigation for radicalisation, conversions and destabilising activities. (AI-Generated Image) What if a charity was not just a charity? Over the past decade, Indian investigative agencies have uncovered what they describe as a web of organisations that allegedly used the cover of social welfare, education, healthcare and religious charity to receive foreign money, move funds through hawala channels and finance activities that authorities say threatened India’s social and security fabric. The alleged model was simple but difficult to detect: raise money abroad, bring it into India through formal banking channels or clandestine hawala routes, layer it through trusts and accounts, and then deploy it for activities far removed from the stated charitable purpose. Between 2016 and 2026, agencies including the NIA, Enforcement Directorate, Uttar Pradesh ATS, Gujarat Police SOG and the Ministry of Home Affairs acted against multiple organisations over allegations ranging from FCRA violations and money laundering to radicalisation, illegal conversions and terror financing. The cases are different, but investigators have pointed to recurring elements—foreign donors, intermediary organisations, shell entities, cash withdrawals, hawala operators, unapproved recipients and ideological mobilisation. Here is how the alleged ecosystem worked. Islamic Research Foundation (IRF): From Foreign Donations To Radicalisation Allegations Founded by Zakir Naik, the Islamic Research Foundation became one of India’s earliest major cases involving allegations that a charitable and educational organisation was being used to propagate extremist ideology.
According to government allegations, IRF received substantial foreign contributions through its charitable and educational activities. Investigators alleged that money was subsequently used to produce and distribute literature, support Peace TV broadcasts and finance programmes and tours that authorities said could radicalise young people and promote religious disharmony. The alleged network also brought IRF-linked individuals under scrutiny for their connections with international extremist networks. The Centre cancelled IRF’s FCRA registration in 2016 and declared the organisation an unlawful association under the UAPA. The ban was subsequently renewed. The alleged funding trail extended across Saudi Arabia, the UAE, Kuwait, Qatar and the UK, with investigators examining wire transfers into Indian accounts linked to IRF, associated trusts and companies. Rehab India Foundation: Breaking Big Money Into Small Deposits Rehab India Foundation emerged in investigations into the financial network surrounding the banned Popular Front of India. Investigators alleged that foreign remittances and funds were fragmented into numerous smaller deposits, with amounts deliberately structured below thresholds that could trigger additional scrutiny. The alleged purpose was to make large flows look like a series of ordinary transactions. Investigators also alleged that money moved through multiple bank accounts and was eventually used for activities connected with PFI’s wider organisational network. The FCRA registration was cancelled in 2022, while the broader PFI network was banned by the Centre the same year. The alleged funding trail extended to Gulf countries including Qatar, Saudi Arabia, the UAE, Kuwait and Oman. Al-Hasan Educational & Welfare Foundation: When Welfare Allegedly Became A Conversion Network The case involving the Al-Hasan Educational and Welfare Foundation took the alleged foreign-funding network into another sphere—organised religious conversion. Led by Mohammad Umar Gautam, the organisation presented itself as an educational and welfare initiative. The Uttar Pradesh ATS, however, alleged that foreign funds were misreported and routed through unauthorised entities before being used by the Islamic Dawah Centre for conversion activities.
The BriefWire