ED Arrests MK Faizi In PFI Money Laundering Case; SDPI National President Held At Delhi Airport

Mumbai: The Enforcement Directorate (ED) has arrested Moideen Kutty K, also known as M.K. Faizy, the National President of the Social Democratic Party of India (SDPI), in connection with a money laundering case linked to the banned Popular Front of India (PFI). He was apprehended at Delhi’s Indira Gandhi International Airport on March 3, A special PMLA court in Patiala House has granted the ED six days of custodial interrogation.

ED investigation Faizi was apprehended after a thorough investigation revealed alleged connections to financial transactions that contravene anti-money laundering statutes. The ED sources have stated that these actions are part of a broader effort to dismantle financial networks associated with organizations suspected of promoting unlawful and extremist activities. SDPI was established in 2009 and was linked to the Popular Front of India (PFI), which was banned by the central government a few years ago. However, SDPI has denied any such association with PFI and claims to be an independent organization.

Investigations have uncovered that Faizy, a former PFI member, joined SDPI in 2009 and later ascended to key leadership positions, including National Secretary and eventually National President. The ED alleges that Faizy was actively involved in acquiring, possessing, and utilizing proceeds of crime, which were reportedly used for election funding and other party-related activities. ED Investigation claims that SDPI received at least Rs 4.07 crore from PFI through clandestine transactions, attempting to disguise the illicit origins of the funds.

The ED recorded Faizy’s statement under Section 50 of PMLA in January 2024, during which he denied any financial ties between SDPI and PFI. However, he failed to appear before the agency despite being summoned 12 times, leading to a bailable warrant issued in December 2024, followed by a non-bailable warrant in January 2025. Investigators claim that Faizy deliberately evaded questioning and obstructed the investigation.

The ED has sought a 10-day custodial remand of Faizy, citing the need for sustained interrogation to confront him with evidence and other accused individuals in the case. The court granted only 6 days ED custody to the Agency.

Demanding his custody, ED shared the investigation findings to the Special PMLA court, stating that an in-depth probe had revealed that Popular Front of India (PFI) has revealed its deep-rooted control over the Social Democratic Party of India (SDPI), its political front. Documents and digital evidence seized during searches indicate that PFI not only funds but also supervises SDPI’s activities, including election strategies and policy-making decisions.

According to an ED statement recorded on December 23, 2020, under Section 50 of PMLA, a former PFI member and National General Secretary of Campus Front of India confirmed that SDPI functioned as PFI’s political wing. Investigators claim that a special committee within PFI monitored SDPI’s operations through quarterly meetings.

During searches conducted on December 3, 2020, at multiple locations linked to PFI, officials reportedly recovered incriminating documents and digital records confirming PFI’s financial influence over SDPI. The ED alleges that PFI raised significant funds through illegal channels, including underground hawala networks and bogus cash donations, before routing them through accounts of sympathizers.

The digital document recovered during the search operation provides insight into the true objectives of the PFI, describing it as an organization committed to advancing an Islamic movement in India by endorsing the principles of Jihad in all forms. It positions itself internally as an Islamic movement and externally as a social movement. To achieve these goals, the PFI has established SDPI and several front organizations like NCHRO and NWF.

The ED’s probe has also revealed a substantial overlap between PFI and SDPI memberships, indicating that SDPI served as a political front to advance PFI’s objectives. Seized documents reportedly include scanned copies of meeting minutes from PFI’s Political Action Committee (PAC) and State Executive Committee (SEC), revealing that PFI financed SDPI’s election campaigns.

The ED alleges that PFI was involved in illegal fundraising and money laundering. The agency found that over Rs 62 crore was deposited into 29 PFI-linked accounts between May 2009 to May 2022, including Rs 32.07 crore in cash. The ED discovered that PFI used bogus cash donations to launder money, routing funds through the bank accounts of alleged sympathizers before transferring them to its own accounts to legitimize illicit cash.

Searches were conducted at PFI offices and the residences of its office bearers, leading to the recovery and seizure of a large volume of incriminating documents and digital devices. These revealed that PFI had thousands of active members in Gulf countries and was systematically raising and collecting substantial funds from abroad in a well-organized manner. These funds were then transferred, layered, and integrated into the financial system, ultimately being used to support unlawful activities over an extended period.

ED officials discovered scanned minutes of meetings from PFI’s Political Action Committee (PAC) and State Executive Committee (SEC), revealing that PFI funded SDPI’s election campaigns. The National Executive Council (NEC) of PFI had approved fundraising in Gulf countries for SDPI and even allocated funds for SDPI leaders facing legal charges.

The overlapping membership of cadres of PFI-SDPI, involvement of PFI office bearers in the founding of SDPI, utilization of each other's assets, evidences the deep-rooted nexus between these two organizations and that SDPI is a front organization of PFI through which PFI has been carrying out its anti-national and criminal activities even while overtly taking a stand that PFI is a social welfare organization.