ED arrests SDPI chief MK Faizy over alleged PFI links, money laundering; What we know so far

New Delhi: The Enforcement Directorate (ED) took the national president of the Social Democratic Party of India (SDPI) Moideen Kutty K alias MK Faizy into custody, citing allegations that under his leadership, continues to promote the ideology and objectives of the banned Popular Front of India (PFI) and receives financial support from it. 

Sources familiar with the case reported that Faizy, 55, a resident of Palakkad, Kerala, was apprehended at Delhi airport around 9:30 PM on Monday (Mar 03). His arrest under the Prevention of Money Laundering Act (PMLA) follows a raid conducted by the financial investigation agency at his Kerala residence on February 28.

In addition to Faizy, two former chairpersons of PFI, OMA Salam and E Abubacker, who were among the organization’s top leaders, have also been detained.
The ED had previously linked Faizy to Kerala-based PFI leader Abdul Razak BP in 2022, alleging that he was involved in fund-raising activities, including a Rs 2 lakh transaction to a specific account.

A press release from the ED read, "During search proceedings conducted on 03.12.2020 at various locations belonging to PFI and its office bearers, numerous incriminating documents and digital evidence were recovered and seized, that establishes that PFI used to control, fund and supervise the activities of SDPI; that SDPI is a front of PFI having common members/cadres and leaders; that SDPI was dependent on PFI for its day-to-day functions, policy making, selecting candidates for election campaign, public programs, cadre mobilization and other related activities."

The Social Democratic Party of India (SDPI), established in 2009 and based in Delhi, is believed to function as the political wing of the Popular Front of India (PFI). The Union government banned PFI in September 2022, citing its alleged involvement in unlawful activities.

Latest developments:

According to the ED, the financial transactions of SDPI were controlled by PFI, which also provided election funds for the party. The investigation suggests that PFI had the final say in selecting SDPI candidates. The agency also claims that while the organization presents itself as a social movement outwardly, it operates as an Islamic organization internally.

Evidence of Rs 4 crore in illegal transactions has been discovered, with funds reportedly coming from Gulf countries and collected under the guise of Ramadan donations. The ED alleges that these funds were used for anti-national activities, including planned attacks and extremist operations within India.

The ED, in its official statement, asserted that SDPI and PFI are essentially the same entity. The financial dealings of SDPI were allegedly overseen by PFI, with illicit money being funneled into the country through various channels, including hawala networks. The agency claims that Faizy was directly aware of these transactions.

Despite being served 12 summonses, Faizi allegedly failed to appear before authorities, leading to his arrest. The ED has identified assets worth Rs 61.72 crore linked to PFI in this ongoing investigation. M.K. Faizy was taken into custody earlier this morning in connection with the case.
 

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