PFI men used Abu Dhabi hotel as money laundering front: ED

New Delhi, May 13

The Enforcement Directorate (ED) today said it has filed a supplementary chargesheet in a special Lucknow court under the PMLA against PFI leaders Abdul Razaq Peediyakkal alias Abdul Razak BP and Asharaf Khadir alias Ashraf MK alleging that a hotel in the UAE “served” as a money laundering front for the Islamic organisation.

The chargesheeted persons — Abdul Razak BP and Ashraf MK — were arrested by the agency in March and April, respectively.

The court has taken cognisance of the chargesheet in which the agency has identified “proceeds of the crime” to the tune of Rs 22 crore, the ED said.

On the role of Ashraf MK, a member of PFI Kerala state executive council, the ED alleged that he was involved in the funding of the organisation and related entities.

“He (Ashraf) was the owner of Darbar restaurant in Abu Dhabi which served as a money laundering front of the PFI. However to conceal the laundering of proceeds of the crime through the restaurant, he did not disclose the fact of ownership of Darbar restaurant to the government authorities,” the ED alleged.

The ED further said Abdul Razak BP was “involved” with him in carrying out money laundering activities of the PFI and linked entities through this restaurant. “He (Ashraf) received proceeds of crime of around Rs 48 lakh from his brother who was managing Darbar restaurant. Another company owned by him, Tamar India Spices Pvt. Ltd, was also used to launder proceeds of the crime,” the ED said.

Ashraf, former president of PFI, Ernakulam, was arraigned by the NIA as an accused in the 2010 hand chopping case of professor Joseph, it said, adding that he “actively” participated in the activities of PFI’s related entities such as Social Democratic Party of India and its student wing CFI.