ED opens PMLA probe into foreign funds to Naxals

New Delhi: The Enforcement Directorate (ED) has registered a money laundering case under relevant provisions of the Prevention of Money Laundering Act (PMLA) to investigate the alleged “systematic diversion of foreign funds to Left Wing Extremism (LWE)/Naxalite-affected areas” and the alleged transfer of around 95cr of illicit foreign funds into India, a major portion of which allegedly reached Maoist-affected areas in Chhattisgarh. and Assam.

People in the know told ET that the federal agency registered the PMLA case last week. Apart from initiating a PMLA probe, the ED has also written to the Central Bureau of Investigation (CBI), asking it to file a case under relevant provisions of the Unlawful Activities (Prevention) Act (UAPA) for alleged violations of FCRA and BNS, 2023.

The agency claimed that the money in question (₹95 cr) was transferred to India using cards issued by foreign banks between November 2025 and April 2026.
As ET reported last month, ED is investigating the alleged destruction of digital evidence and the involvement of a foreign organization operating through a network of front entities. The agency opened an investigation under FEMA, initially involving a U.S.-based bank, Truist Bank, U.S.A., and more than a half-dozen individuals. After FEMA completed its investigation, the ED shared its investigation findings with the Karnataka and Chhattisgarh Police, which recently registered FIRs to investigate the incident.

ED has initiated an investigation based on inputs from the Financial Intelligence Unit of India into the receipt and disbursement of foreign funds in India through foreign bank debit cards issued by Truist Bank, USA, bypassing designated banking and regulatory channels.