Tribunal initiates closure of J&K's NGO running schools over national security
Amid a probe into its alleged involvement in anti-India activities, the Company Law Tribunal (NCLT) has removed the management of an NGO running schools and
Amid a probe into its alleged involvement in anti-India activities, the Company Law Tribunal (NCLT) has removed the management of an NGO running schools and madrasas in Jammu and Kashmir, Siraj-Ul-Uloom Welfare Foundation, and handed over complete control of the organisation to an Official Liquidator for winding up its affairs. The Tribunal's intervention came after the Ministry of Corporate Affairs (MCA) informed the court that the activities of the non-profit organisation posed a threat to India's sovereignty, integrity and national security. Read Full Story As part of the action, the Official Liquidator has been directed to immediately freeze and take control of all bank accounts, properties and financial records of the foundation to safeguard public funds and preserve evidence. The proceedings were initiated following a report prepared by the Jammu & Kashmir CID, which allegedly described the activities of the Siraj-Ul-Uloom Welfare Foundation as fraudulent, contrary to its stated objectives, and prejudicial to the sovereignty and integrity of India.
Following receipt of the CID report, the Director General of Corporate Affairs directed the Regional Director in Chandigarh in March to initiate proceedings for the closure of the entity. The communication also instructed authorities to take appropriate steps for the freezing and attachment of assets belonging to the foundation's directors and key managerial personnel under the relevant provisions of the Companies Act. According to the ministry's petition, the NGO was established to run educational institutions and social welfare programmes. However, information received by the MCA suggested that the organisation was allegedly being used for activities considered detrimental to the sovereignty and integrity of India. The ministry subsequently activated its regional enforcement mechanism to investigate the entity. During the inquiry, the foundation's management allegedly admitted that its financial operations were being routed through an older trust structure.
The MCA contended that this arrangement was being used to obscure the organisation's financial transactions and evade regulatory scrutiny and corporate oversight. Citing concerns that evidence could be destroyed or funds diverted if the management became aware of the investigation, the Centre sought urgent intervention from the NCLT. The ministry argued that immediate action was necessary to prevent the possible siphoning of funds and secure relevant records. Accepting these concerns, the Tribunal passed an ex parte order, allowing authorities to act without prior notice to the foundation and move swiftly against the organisation. With the Official Liquidator now assuming charge, the foundation's former directors have been stripped of all powers. The liquidator has begun the process of identifying and taking inventory of the foundation's funds and assets, including what authorities described as commingled assets.
The BriefWire