AHMEDABAD: The Enforcement Directorate on Tuesday conducted multiple searches in Gujarat as part of a money laundering investigation linked to alleged financial irregularities and misuse of certain Waqf properties in the state, official sources said.
A case has been filed by the agency under the Prevention of Money Laundering Act (PMLA) taking cognisance of a Ahmedabad Police FIR field against one Salim Khan Jumma Khan Pathan, Mohammad Yasar Abdulhamiya Sheikh, Mehmud Khan Jumma Khan Pathan, Fezmohamad Pir Mohammad Chobdar and Saheed Ahmad Yakubhai Sheikh.
The accused had "illegally" claimed to be trustees of the Kanch Ki Masjid Trust and Shah Bada Kasam Trust, the agency said.
About nine premises of the accused and their associates are being raided across Gujarat by the Ahmedabad zonal office of the federal probe agency, the sources said.
The accused entered into "fraud" lease agreements, extorted rents from tenants, and submitted "false" affidavits to the Waqf Board, according to agency sources.
The ED suspects that the accused built shops on Trust's land and collected rent and committed "fraud and conspiracy" against the Ahmedabad Municipal Corporation (AMC) and Waqf Board for "personal" gains.
Sources said a plot of land located adjacent to the 'Kanch Ki Masjid' was originally owned by the Kanch Ki Masjid Trust.
This land, according to sources, was given to the AMC years ago with an agreement that it would be used for the construction of two Urdu schools.
The "intent" was to provide education to local children of classes 1 to 7.
The school was damaged during the 2001 earthquake and later demolished in 2009.
About 150-200 houses and 25-30 shops were built here "illegally" between 2008 and 2025.
Rent was collected by the accused persons every month from these immovable assets but not deposited into the trust's account.
The accused are alleged to have siphoned off the trust money and land which was originally meant for community welfare, according to the sources.
The accused submitted a "forged" affidavit to the Waqf Board at Gandhinagar in 2024 to falsely claim trusteeship.
This was reportedly used to mislead both the board and the AMC, the ED suspects.