JAMMU, JULY 24: The Enforcement Directorate (ED) here have arrested two persons under the provisions of Prevention of Money Laundering Act (PMLA) 2002 for their involvement in funding the subversive activities of terrorist group Hijbul Mujahideen (HM).
“Arshad Ahmed Allie and Fayaz Ahmed Dar were arrested on July 22, 2024 under the provisions of PMLA 2002 in connection with a case involving narco-terrorism, linked to funding of the subversive activities of terrorist group HM,” an ED statement said.
Detailing the case involving a major drug-terror nexus, the ED statement said that Arshad Ahmed Allie and Fayaz Ahmed Dar were arrested on May 27, 2019 by Police Station City, District Jammu, with the recovery of Rs 12, 00, 560 cash, and 260 grams of heroin from a white Creta car driven by them having a temporary RC, prompting the police to register an FIR number 38/2019.
It said the investigation in the case revealed that Allie and Dar were involved in a criminal conspiracy, financing the illicit trafficking of narcotics from across the border to fund terrorist activities in the region.
Arshad Ahmed Allie was active in the drug trafficking since 2011, operating with a commission of Rs 7.5 lakhs per kilogram of heroin. In the two years leading to his arrest, Allie dealt in heroin worth Rs 2.16 crores, sourcing substantial quantities from one Mohammad Altaf, also known as Hafiz.
The network extended to Pakistan-based terrorists, including Naseer Ahmed (brother of Fayaz Ahmed Dar), Aijaz Ahmed Pandit (alias Ranga), and Shanni, both residents of Pakistan, alongside Mohammad Razak (alias Billa) from Poonch at present Pakistan.
Allie sold drugs to one Ladi Ram, who paid in cash that was funnelled into bank accounts linked to Allie and circulated among terrorists, he said.
Allie used to provide money to accused Mohammad Latief Dar (HM outfit) who in turn, on the instructions of accused Fayaz Ahmed Rather alias Shahid, an HM financer, provided the same to Mohammad Shafi Bhat, he said, adding that Bhat provided the money to accused terrorist Idrees (now dead) of HM outfit, Owais (dead) of HM outfit, and Farooq Ahmed Bhat alias Ghazi.
During police investigations, the ED statement said that authorities froze seven bank accounts holding Rs 24, 39, 209 and seized Rs 12, 00, 560 in cash along with a Creta car.
The competent authority in New Delhi confirmed these seizures, including Rs 2, 19, 117 from Mohammad Altaf’s account.
Additionally, four bank accounts of Mohammad Latief Dar were also frozen, he said.
It said, during investigations under the PMLA, evidences in the form of statements recorded under section 50(2) and (3) of PMLA, 2002, documents from various authorities including banks, police authorities, were collected, scrutinized, and analyzed in light of relevant legal provisions of the PMLA, 2002 and laid down procedures.
Further investigations uncovered that proceeds from drug trafficking were deposited into accounts associated with Allie, his family, and his business, M/s New Style Car Bazar, said the ED statement.
“These funds were used to support terrorist activities, revealing the tainted nature of the money,” it said.
“Evidence shows Arshad Ahmed Allie played a pivotal role in channelling drug trafficking funds into terrorist activities. He disguised the proceeds through his second-hand car business, benefiting directly from these illicit funds,” the ED statement further said.
“His (Allie’s) actions constitute money laundering under Section 3 of the PMLA,” he added.
Fayaz Ahmed Dar assisted Allie, with his involvement facilitated by his brother, a Pakistan-based terrorist.
Dar was intercepted with drugs and cash, admitting to being Allie’s partner in M/s New Style Car Bazar but failing to justify the suspicious transactions, the ED statement said.
“He helped legitimize the laundering of drug money, creating an infrastructure to support terrorist organizations in collusion with Allie,” it the statement said.
Post arrest of Arshad Ahmed Allie and Fayaz Ahmed Dar on July 22, the duo was produced before the Special Court (PMLA), Jammu, where their five day custody was granted to the investigating agency for further investigation, said the ED statement.
