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 probe the alleged "systematic routing of foreign funds into Left-Wing Extremism (LWE)/Naxalite-affected areas" and the alleged channelling of nearly ₹95 cr in illegal foreign funds into India, with a sizable portion allegedly reaching Maoist-affected areas in Chhattisgarh and Assam.

The federal agency registered the PMLA case last week, people in the know told ET. Besides launching a PMLA probe, ED has also written to the Central Bureau of Investigation (CBI) asking the latter to register a case under relevant provisions of Unlawful Activities (Prevention) Act (UAPA), for alleged violations of FCRA and BNS, 2023.

The agency has claimed that the said money (₹95 cr) was channelled into India by using foreign bank issued cards during the period from November 2025 to April 2026.


As ET reported last month, the ED is investigating the alleged destruction of digital evidence, and the involvement of a foreign organisation operating through a network of shell entities. The agency initially launched an investigation under FEMA involving a US-based bank, Truist Bank, USA, and over half a dozen individuals. After completing its FEMA probe, the ED shared its probe findings with Karnataka and Chhattisgarh Police, who recently registered FIRs to investigate the case.

The ED launched a probe based on input received from the Financial Intelligence Unit - India about receipt and utilisation of foreign funds in India through foreign bank debit cards issued by Truist Bank, USA, bypassing prescribed banking and regulatory channels.