LUCKNOW: The Enforcement Directorate (ED) on Saturday detained senior Samajwadi Party (SP) leader Azam Khan in a money laundering case, shortly after he walked out of Rampur jail on bail in an alleged PAN card fraud case, along with his son, Abdullah Azam, after spending over 11 months in prison.
According to sources, a heated argument ensued between ED officials and Khan for some time before the agency took him into custody and drove him away amid sloganeering by his supporters. His son went home.
Around 15 minutes before Khan's release, an ED team had entered the jail premises amid tight security, with 24 CRPF personnel deployed outside the prison.
The Allahabad High Court had suspended the 10-year prison sentence imposed on Khan and Abdullah in the PAN card case and granted bail to both on October 29.
The ED had registered an FIR against Khan, the Maulana Mohammad Ali Jauhar Trust and others on October 14, following prolonged questioning of the SP leader in jail over alleged unexplained expenditure of Rs 416.14 crore on the construction of Mohammad Ali Jauhar University in Rampur.
The case was registered at Azeemnagar police station in Rampur district under Sections 61 (criminal conspiracy), 316(5) and 318(4) (criminal breach of trust) of the Bharatiya Nyaya Sanhita (BNS), 2023, and Sections 7, 13(1)(d) and 13(2) of the Prevention of Corruption Act, 1988.
The FIR named Khan, the Maulana Mohammad Ali Jauhar Trust, SS and S Enterprises, SS Chik Associates Private Limited and others.
During its probe, the ED had found a significant mismatch between the university's declared expenditure and the assessed value of its construction.
According to ED sources, an Income Tax Department valuation report dated November 10, 2023, estimated the cost of buildings on the campus at Rs 494.46 crore. However, the trust's income-tax returns from FY 2013-14 to FY 2024-25 disclosed capital expenditure of only Rs 78.32 crore, leaving an alleged unexplained gap of Rs 416.14 crore.
Khan's release from jail on Saturday assumes political significance ahead of the Uttar Pradesh Assembly elections early next year. SP chief Akhilesh Yadav had also met Khan at Rampur jail nine days earlier, on October 22.
Khan was first sent to jail on February 26, 2020. He was released on May 20, 2022, after the Supreme Court granted him interim bail. He was jailed for a second time on October 18, 2023, and released on September 23, 2025. He was sent to jail for a third time on November 17, 2025, and released on October 31, 2026, only to be taken into ED custody again.