ED flags Rs 95 crore cash trail in Maoist-hit areas

The Enforcement Directorate (ED) plans to ask the Central Bureau of Investigation (CBI) to formally investigate claims that a US-based Christian evangelical group illegally sent and used about Rs 95 crore in foreign funds in India. Some of these funds reportedly reached areas affected by Left Wing Extremism (LWE) using overseas debit cards.

Officials say this step comes after the ED’s ongoing investigation under the Foreign Exchange Management Act (FEMA). The agency has already searched several places and found evidence that suggests Indian banking and regulatory channels were deliberately avoided. ED teams searched locations in Bengaluru and Mysuru in Karnataka, Goalpara in Assam, and Dhamtari district in Chhattisgarh.

The searches focused on people and groups connected to The Timothy Initiative (TTI), a US-based group based in Raleigh, North Carolina. Investigators found 25 foreign-issued debit cards, about Rs 40 lakh in cash, digital devices, and documents during the raids. The debit cards were linked to Truist Bank in the United States.

The probe was triggered by a Suspicious Transaction Report (STR). The investigation began after the Financial Intelligence Unit-India (FIU-IND) filed an STR. The report highlighted a method in which foreign funds were received and used in India via overseas bank debit cards, circumventing the usual banking and FCRA rules.

The amount of money involved was large. According to the ED, nearly Rs 95 was channelled into India through this mechanism. A significant portion of cash withdrawals occurred in LWE-affected areas, particularly in Chhattisgarh’s Dhamtari and Bastar regions, where around Rs 6.5 crore was withdrawn. Officials described the emergence of a “parallel cash-based economy” in Naxal violence-hit zones as a serious threat to national security and financial integrity.

Such networks, they noted, could facilitate the movement of illicit funds for unlawful activities.

TTI is not registered under the FCRA, so it cannot legally receive or use foreign contributions in India. The group is accused of using foreign debit cards to withdraw cash from ATMs in different states, without using approved Indian banks or obtaining the required permissions. The ED pointed out that these repeated large cash withdrawals were especially concerning in tribal and Maoist-affected areas.

Investigators believe these actions created an unregulated financial system outside the control of the Reserve Bank of India and the Ministry of Home Affairs. The ED’s findings led to the registration of criminal cases. Police later filed FIRs under the Unlawful Activities (Prevention) Act (UAPA) and Bharatiya Nyaya Sanhita (BNS) against TTI and six people after the ED’s complaint.

These issues have national security implications. By contacting the CBI, the ED wants a focused investigation under the FCRA. This would look at the entire chain of foreign funding, the possible use of shell companies or operatives in India, any destruction of digital evidence, and exactly how funds were used in LWE areas, an official said.

The penalties include imprisonment, fines, and cancellation of permissions for organisations. In cases involving national security or LWE regions, the stakes are considerably higher. The Timothy Initiative describes itself as a global evangelical ministry focused on church planting and leadership development.

The ED probe, however, centres purely on the financial and regulatory violations, not on the organisation’s religious objectives. India has also tightened scrutiny of foreign funding to prevent misuse, money laundering, and activities detrimental to the national interest.

The FCRA requires anyone who wants to accept foreign contributions to register or get permission first. The reported use of debit cards to set up a parallel funding network in insurgency-affected areas has made enforcement more challenging.

Officials said this case shows why strong monitoring of cross-border money flows that avoid official systems is needed.

The ED’s investigation is still ongoing. More information is expected once the case is officially sent to the CBI and as experts examine the seized devices and records. As attention to unregulated foreign money entering sensitive areas remains high, security agencies and regulators will keep a close watch on developments in the CBI probe, officials added.