Mental element for terror-financing liability requires knowledge or suspicion that funds would be used for terrorism

Liability for fund-raising or provision of money under anti-terror law requires more than proof of a transfer of funds; the statute also requires knowledge, or reasonable cause to suspect, that the money would be used for terrorist purposes. The expression "terrorist act" and the fund-raising provisions are applied to conduct involving the requisite mental element linked to terrorist use. On the materials then available, a mere alleged delivery of money, without prima facie evidence of such knowledge or suspicion, was insufficient to justify continued detention, and the bail-rejection order was set aside.

---

---

Issues: Whether, on the materials then available, the appellant could be denied bail under the anti-terror law despite the alleged delivery of money, in the absence of prima facie material showing knowledge or reasonable cause to suspect that the money would be used for terrorism.

Analysis: The statutory scheme required more than a mere transfer or provision of funds. For an offence involving fund-raising for terrorist activity, the legal ingredients included not only the provision of money or property but also knowledge, or reasonable cause to suspect, that it would or may be used for the purposes of terrorism. The expression "terrorist act" and the fund-raising provisions were treated as covering only acts done with the requisite intent or with the necessary awareness of terrorist use. On the material then before the Court, the alleged delivery of money, without clear prima facie evidence of the appellant's knowledge of its terrorist use, was insufficient to justify continued detention.

Conclusion: The appellant was entitled to bail, and the bail-rejection order was set aside.

Final Conclusion: The decision turned on the requirement that fund transfer liability under the anti-terror statute depends on a demonstrable mental element linked to terrorist use, and on the facts before the Court that threshold was not prima facie established.

Ratio Decidendi: For liability for fund raising or provision of money in aid of terrorism, knowledge or reasonable cause to suspect terrorist use is an essential ingredient, and a mere transfer of funds without that mental element is insufficient.

---