The Centre has banned Popular Front of India (PFI) and its eight front organisations for five years under the Unlawful Activities (Prevention) Act (UAPA) on charges of being involved in "several criminal and terror cases". The PFI, which came into existence on December 9, 2006, has also been accused of having links with the domestic and global terror organisations such as the Students Islamic Movement of India (SIMI), and Islamic State of Iraq and Syria (ISIS) and Jamat-ul-Mujahideen Bangladesh (JMB).

The PFI's eight associated organisations banned are: Rehab India Foundation (RIF), Campus Front of India (CFI), All India Imams Council (AIIC), National Confederation of Human Rights Organization (NCHRO), National Women’s Front, Junior Front, Empower India Foundation and Rehab Foundation, Kerala. The ban on the PFI will have to be confirmed by a tribunal which would be established under the UAPA.

The move comes after September 22 multi-agency raids, headed by the NIA, across the country which lead to the arrest of over 100 PFI top leaders and members. A second round of country-wide raids was carried out on Tuesday to round up more PFI and its affiliate members whose names cropped up in the interrogation of its top leadership arrested on September 22, said government sources.

"NIA was investigating it and based on the evidence, this action has been taken. If they (PFI) wouldn't have been dangerous then why would they have been banned,?" Ajay Mishra Teni, the Minister of State for Home said.

Expected to move SC

Kerala State General Secretary of PFI, Abdul Sattar, who was also subsequently detained by the police on Tuesday, announced that "All PFI members and public are informed that the Popular Front of India (PFI) has been dissolved. MHA has issued a notification banning PFI. As law-abiding citizens of our great country, the organization accepts the decision". The PFI is expected to challenge the ban in the Supreme Court.

Over 1,400 criminal cases had been registered against cadres of the PFI and its affiliates across the country including under the UAPA, the Explosive Substances Act, Arms Act and other sections of the IPC.

Modes of finance

A couple of years before the crackdown, the government, said ministry sources, had prepared a dossier on proscribed PFI's leadership, terror and anti-national activities, association within and outside the country and funding. Though the officials did not give a figure on the amount collected over the years by the outfits, they stated PFI and its affiliates maintain a large number of bank accounts and receive money through its well-wishers and financers based in India and abroad. It also collects Zakat (donations) from its wealthy supporters.

Investigating its finances, the Central Board of Direct Taxes, under whom comes the Income Tax department, had scanned bank accounts and found them to have dubious means of collecting money. "The source of deposits concerning 36 bank accounts, out of 85 bank accounts of PFI, were not supported by the financial profile of the account holders, besides activities of PFI were not being carried out as per the objects of the Trust," stated a dossier prepared by the law enforcement agencies. The CBDT, subsequently, withdrew or cancelled registration granted to PFI and cancelled on March 30, 2021 tax exemptions given to its NGO Rehab India Foundation, revealed the dossier.

Funds sent via Hawala

The Enforcement Directorate's probe since 2020 highlighted that the PFI had created a very well-organised structure in Gulf countries for raising funds and the collected fund was sent to India through Hawala. "It was found that PFI was operating money laundering fronts overseas, which included Munnar Villa Vista project in Kerala and Darbar restaurant in Abu Dhabi. In Munnar Villa vista project, lakhs of unaccounted cash were infused and some benami shareholders of this project were located in UAE, who later transferred the shares to PFI leaders," alleged the agency dossier.

The ED is also said to have found that PFI had formed district executive committees in various gulf countries including the United Arab Emirates, Oman, Qatar, Kuwait, Bahrain and Saudi Arabia for gathering support and wiring funds to India. The India Fraternity Forum (IFF) and Indian Social Forum (ISF) were PFI’s overseas fronts. Funds were generally collected in cash and remitted to India either through Hawala channels (covertly) or camouflaged as remittances by sending them to the accounts of India-based relatives and friends of PFI’s members and sympathisers working abroad.

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