2026 (7) TMI 166

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....is preferred by accused Nos. 1, 3, 4, 5 and 6. Both petitions, therefore, converge upon the legality and sustainability of proceedings initiated in Crime No. 202 of 2026. 2. Shorn of unnecessary details, facts in brief, germane, are as follows: - 2.1. Accused No. 2 was intercepted at the Kempegowda International Airport while allegedly found in possession of 24 international debit cards. The accusation against him does not halt at mere possession. It is alleged that he had repeatedly traversed beyond the territorial shores of the nation and, upon each return, brought with him multiple ATM debit cards, whereafter, the Enforcement Directorate conducted search and seizure operations on 18-04-2026 and 19-04-2026 for suspected violations under the Foreign Exchange Management Act ('FEMA' for short). 2.2. During the course of search and investigation, the Enforcement Directorate claims to have unearthed a network of financial operations linked to an entity based in the United States of America, operating under the name The Timothy Initiative. Upon scrutiny of financial transactions, documentary material, and statements recorded during investigation/search, the Directorate formed ....

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....o. 2 to institute Criminal Petition No. 8401 of 2026. 3. The companion petition by accused Nos. 1, 3, 4, 5 and 6 arises out of the same factual matrix and challenges the very same crime, particularly the invocation of offences under UAPA. Repetition of facts, therefore, would be an exercise in redundancy. 4. Heard Sri M.S. Shyam Sundar, learned senior counsel appearing for accused No. 2/petitioner in W.P. No. 8401 of 2026; Sri S. Basavaraj, learned senior counsel appearing for accused Nos. 1, 3 to 6/petitioners in Writ Petition No. 8417 of 2026; Sri B.N. Jagadeesha, learned Additional State Public Prosecutor-I appearing for 1st respondent/State and Sri Madhu N. Rao, learned Special Public Prosecutor appearing for the 2nd respondent/complainant in both the cases. SUBMISSIONS: PETITIONERS: IN CRL.P.8401 OF 2026: 5. The learned senior counsel Sri M.S. Shyam Sundar, appearing for accused No. 2 would vehemently contend that proceedings initiated by the 2nd respondent are in violation of the provisions of the Act. The provisions of the Act do not empower the Enforcement Directorate to communicate to any of the jurisdictional Police or any authority for registration of a....

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.... the accounts are opened. From the accounts it is not 24, but there are 900 debit cards issued. 24 debit cards were found in possession of accused No. 2 alone and from those debit cards close to Rs.100 crores are withdrawn and those funds are used to fund left wing extremists in Karnataka, Chhattisgarh and Jharkhand. Left wing extremists is not only a banned organization, but a banned terrorist outfit. If accused are the ones who are funding the said organization, the crime must not be interdicted at this stage. He would submit that it is only a tip of ice berg and the entire investigation must be permitted to be continued. The submissions of accused No. 2 with regard to filing a writ petition and contending that he was assaulted and tortured in the custody would not mean that the present crime is being registered as a counterblast, while it is not. It is for the activities against the nation. 9. I have given my anxious consideration to the submissions made by the respective learned counsel and have perused the material on record. CONSIDERATION: THE CORE: The central issue that falls for consideration is narrow, though its implications are profound: whether the investig....

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.... 2. On the basis of analysis of financial transactions, records, documents, statements recorded at the search premises of Jonathan S Rajan, Micah Mark, Ajit Verghese Mathai Varghese Chacko, Bablu Kurmi and Supreme Joy, it has been revealed that the said individuals and others in criminal conspiracy with The Timothy Initiative (TTI), a USA based organization, have coordinated and withdrawn foreign funds through various ATMs across India using foreign debit cards, issued by Truist Bank of USA. The said funds were withdrawn and utilised in contravention of the provisions of FEMA, 1999 and FCRA, 2010. Funds amounting to Rs 92.55 crore approx. (USD 99,95,240) has been utilized in contravention of legal provisions in the last 6 months i.e from November 2025 to April 2026. On preliminary analysis of seized records it was observed that funds of Rs.44 crores approx. have been withdrawn using foreign debit cards across multiple states i.e, Karnataka, Chhattisgarh, Assam etc during the period from January 2024 to March 2026. 3. Micah Mark was intercepted by this Directorate at Kempegowda International Airport, Bengaluru on 18.04.2026, wherein subsequently he was found to be in p....

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.... AU Small Finance Bank ATM located at Vijay Plaza, Bastar Road, Dhamtari (Chhattisgarh) by using two such debit cards which raises concerns regarding the end use of the withdrawn funds. These fund withdrawals have happened under the monitoring of Varghese Chacko, a field level functionary, who resides at # Blessing Home, Ward 20 Bharri Para Sorid Nagar, Dhamtari, Chattisgarh-493773. The aforesaid pattern of systematic cash withdrawals, conducted through a network of entities and field functionaries, in LWE/Naxalite-affected districts of Chhattisgarh, using foreign funds sourced from and directed by The Timothy Initiative, USA, prima facie constitutes "unlawful activity" within the meaning of Section 2(0) of the Unlawful Activities (Prevention) Act (UAPA), 1967, being an activity which is intended to, and does, facilitate the movement of foreign funds into regions under active Naxal influence, thereby causing disaffection against India and threatening its sovereignty, territorial integrity and internal security. The Timothy Initiative, USA, and its Indian network of individuals/entities, prima facie constitutes an "unlawful association" as the said organisation has undertaken activi....

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....arghese Chacko, Bablu Kurmi, Supreme Joy, The Timothy, Initiative, USA and others - in criminal conspiracy with TTI, USA - have, through an elaborate scheme: (i) used foreign debit cards issued by a USA-based bank to withdraw foreign-source funds in cash through Indian ATMs; (ii) caused the said cards to be printed in a single false name ("Santosh Kumar") in breach of KYC norms; (iii) circulated more than a thousand such cards amongst persons who are not the account-holder; (iv) thereby caused foreign funding of approx. Rs. 92.55 crore to be received and utilised in India without FCRA registration / prior permission and without being routed through the designated FCRA Account; and (v) on interception of Shri Micah Mark, remotely destroyed the digital back-end record of the scheme. 9. The acts of the accused persons constitute commission of the cognizable offences under the a) Bharatiya Nyaya Sanhita, 2023 relating to criminal conspiracy; cheating and dishonestly inducing delivery of property; forgery for purpose of cheating; forgery of valuable security or document of title; using as genuine a forged document or electronic recor....

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....functions under any law relating to imposition of any tax, duty or cess or to dealings in foreign exchange, or prevention of illicit traffic in the narcotic drugs and psychotropic substances under the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985); or (ii) such other officer, authority or body performing functions under any other law as the Central Government may, if in its opinion it is necessary so to do in the public interest, specify, by notification in the Official Gazette, in this behalf, any information received or obtained by such Director or any other authority, specified by him in the performance of their functions under this Act, as may, in the opinion of the Director or the other authority, so specified by him, be necessary for the purpose of the officer, authority or body specified in clause (i) or clause (ii) to perform his or its functions under that law. (2) If the Director or other authority specified under sub-section (1) is of the opinion, on the basis of information or material in his possession, that the provisions of any other law for the time being in force are contravened, then the Director or such other authorit....

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....mission of the learned senior counsel Sri M.S. Shyam Sundar would tumble down. This relates to offences under the IPC as alleged by the Enforcement Directorate. THE UAPA: 15. The other offences alleged are the ones punishable under the UAPA. Therefore, the said provisions are required to be noticed. Section 2 deals with definitions. Section 2(o) deals with 'unlawful activity'. It reads as follows: "2. Definitions.-(1) In this Act, unless the context otherwise requires,- .... .... .... "(o) "unlawful activity", in relation to an individual or association, means any action taken by such individual or association (whether by committing an act or by words, either spoken or written, or by signs or by visible representation or otherwise),- (i) which is intended, or supports any claim, to bring about, on any ground whatsoever, the cession of a part of the territory of India or the secession of a part of the territory of India from the Union, or which incites any individual or group of individuals to bring about such cession or secession; or (ii) which disclaims, questions, disrupts or is intended to disrupt the sovereignty and territorial....

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....ist gang or terrorist organisation for the purpose not specifically covered under Section 15 shall also be construed as an offence. 18. Punishment for conspiracy, etc.-Whoever conspires or attempts to commit, or advocates, abets, advises or incites, directs or knowingly facilitates the commission of, a terrorist act or any act preparatory to the commission of a terrorist act, shall be punishable with imprisonment for a term which shall not be less than five years but which may extend to imprisonment for life, and shall also be liable to fine." Sections 13, 17 and 18 of the UAPA deal respectively with unlawful activities, raising funds for terrorist acts, and conspiracy. At this stage, the Court is not called upon to return findings of guilt; it is required only to examine whether prima facie material exists to justify investigation. The material presently available, particularly the communication under Section 66(2), cannot be said to be so barren as to warrant judicial interdiction. Any deeper scrutiny at this stage would risk trenching upon the domain of investigation and potentially prejudicing either side. 16. Insofar as the companion petition filed by accused No....

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....t dismissal. Accordingly, stand dismissed. It is, however, made clear that the petitioners remain at liberty to avail themselves of all remedies available in law, should the final report eventually be laid against them. It is made clear that the observations made during the course of this order are only for the purpose of consideration of the case of the petitioners under Section 528 of the BNSS and the same would not bind or influence the ongoing investigation. Consequently, pending applications if any, also stand disposed. ============= Document 1 Top 15 vendors by amount paid > O $9,995,240.30 Join Mardi 0196 yutun.Paritar 144- Prem Sagar 10% Nitin Kumar 10% 1: Remaining top V. 39% - 054 33105244.31 $1,071.062.07 2533,37347 $056.32792 $3.87732753 Document 2 "ก. ผิวออส (adDed, พอกินบอย สทิช. สรอล อย, ผสมdby: "a Barnes mABadbeEness" (The Timothy Initiative) ส่งสู่ สวกับอ เอสวศุสà....

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....ยมศิษย์ ฉือสองส พก 300 ลอยซ์สวยฝรั่ง (ED) สลิม สสังคมลาออก 392depo. สสอ ชยมฮยอกียง ผัดยำ ผักส่งเร่ง สสสสีเรือ รอกบู (FEMA) สวย หรูสง อีกอกซีอี ฮง ฮอปฺ (PMLA)กษ อายุอผีสือรอคิส), cod ed wasที่ Nowled 288ธ อส.) อบอผมสวส่งส สวสูธผิวสี ผิ๐๘ ๘ซผสมวAd. ฮ ผลผงส ที่อยู่edฮอล์ e8à¸....

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....¸ªà¸§à¸à¸µà¹ˆà¸­ เวลอฮุส ผส อวชส์ ส่งสง สอนและ สุ,ฤกษ์ ของผู้ ฮอสื่อส่ง 2อดฮ เยสพิทักษ์ สงอสง สมอธ ฮอลอส่ง ฮีผง ๘๘กิสสมก. อยู่ผม. 1. 2วอ ลอยซ์สวยฝรั่ง, สสสสอ. สุวซซี สออกซ ซอซ สร สอมะ T-2/HUI-1/09/2026, ลสองซี่: 06.05.2026. 2. ฉวยสะ ธี ออส 80 0 ซีซี, สวม: อสซอส-2/19/2026 ลสองซี: 06.06.2026. # ผà....