ED attaches ₹53.46 lakh property in UP over British citizen madrasa salary fraud
Synopsis
A former madrasa teacher in Azamgarh allegedly acquired British citizenship in 2013, then spent a decade concealing it — drawing salary, pension, and GPF from the UP exchequer while using a surrendered Indian passport to buy property. The ED has now attached ₹53.46 lakh worth of land in Sant Kabir Nagar, calling the state payments proceeds of crime.
Key Takeaways
The ED's Lucknow Zonal Office provisionally attached a ₹53.46 lakh residential plot in Khalilabad, Sant Kabir Nagar under PMLA, 2002 .
Shamsul Huda Khan allegedly acquired British citizenship on 19 December 2013 but concealed it and continued as an assistant teacher at a government-aided madrasa in Mubarakpur, Azamgarh .
He allegedly used a surrendered Indian passport and PAN, Aadhaar, and Voter ID documents to purchase properties in Sant Kabir Nagar .
The Minority Welfare and Waqf Department, UP found his service from 2007 to 2017 was never verified; he was granted voluntary retirement and pension in 2017 .
A total of ₹53.46 lakh in salary, pension, and GPF from the state exchequer has been classified as proceeds of crime.
ED searches were conducted at two premises on 11 February 2026 , yielding incriminating documents.
The Enforcement Directorate (ED) has provisionally attached an immovable property worth ₹53.46 lakh in Uttar Pradesh in connection with a money laundering probe against Shamsul Huda Khan, a former assistant teacher at a government-aided madrasa in Azamgarh, who allegedly continued drawing salary and retirement benefits from the state exchequer even after acquiring British citizenship. The attachment was announced on Friday, 2 October 2026, by the ED's Lucknow Zonal Office.
What Was Attached and Where
The attached asset is a residential land parcel measuring 189.75 sq. m., registered in the name of Shamsul Huda Khan and located in Khalilabad, District Sant Kabir Nagar, Uttar Pradesh. The provisional attachment was carried out under the Prevention of Money Laundering Act (PMLA), 2002. According to the ED, the ₹53.46 lakh constitutes proceeds of crime — representing salary, pension, and General Provident Fund (GPF) disbursements credited to his bank account from the state exchequer — and since those funds had already been dissipated, property of equivalent value was attached in lieu.
The Alleged Fraud: Citizenship Concealed for Over a Decade
The ED's investigation alleges that Shamsul Huda Khan acquired British citizenship on 19 December 2013, which under Indian law meant he automatically ceased to be an Indian citizen on that date. Despite this, he allegedly concealed the fact and continued to serve as an assistant teacher at a government-aided madrasa in Mubarakpur, Azamgarh. He reportedly used his surrendered Indian passport alongside PAN, Aadhaar, and Voter ID documents to purchase immovable properties in Sant Kabir Nagar district.
He allegedly drew salary and retirement benefits from the state exchequer throughout this period. An inquiry by the Minority Welfare and Waqf Department, Government of Uttar Pradesh, subsequently found that his service from 2007 to 2017 had never been verified. Notwithstanding this gap, he was granted voluntary retirement in 2017 along with a regular pension, the ED stated.
Legal Basis and FIRs
The ED initiated its investigation on the basis of multiple FIRs registered by the Uttar Pradesh Police under Sections 419, 420, 467, 471, and 120-B of the Indian Penal Code (IPC), 1860, and Section 318(4) of the Bharatiya Nyaya Sanhita (BNS), 2023. The charges cover cheating, forgery, and criminal conspiracy, among others. ED officials conducted searches at two premises on 11 February 2026, during which incriminating documents were seized under PMLA provisions.
Broader Significance
This case highlights a systemic verification gap: a central government-empanelled employee's service went unverified for an entire decade. It comes amid heightened scrutiny of government-aided madrasa payrolls across several states. Notably, the use of cancelled Indian identity documents — Aadhaar, PAN, Voter ID — to transact property after citizenship renunciation raises questions about cross-departmental data sharing between the Home Ministry, state education boards, and land registration authorities. The ED's move to attach equivalent-value property after the original proceeds were dissipated signals an increasingly aggressive recovery posture under PMLA.
What Happens Next
The provisional attachment will be placed before the Adjudicating Authority under PMLA for confirmation within the statutory timeline. Further investigation into other alleged beneficiaries named in the case — referred to as 'Shamsul Huda Khan and others' — is ongoing, according to the ED statement.
Point of View
But the upstream question is why Aadhaar-linked and PAN-linked payroll systems did not flag a citizenship change that occurred in 2013. Without structural fixes to cross-ministry data sharing, attachment orders remain a downstream remedy for an upstream governance failure.
NationPress
2 Oct 2026
Frequently Asked Questions
Why has the ED attached property in the Shamsul Huda Khan case?
The ED attached a ₹53.46 lakh residential plot in Sant Kabir Nagar under PMLA because Shamsul Huda Khan allegedly drew salary, pension, and GPF from the UP government after acquiring British citizenship in 2013, making those payments proceeds of crime. Since the funds had already been spent, equivalent-value property was attached in lieu.
When did Shamsul Huda Khan acquire British citizenship?
According to the ED, Shamsul Huda Khan acquired British citizenship on 19 December 2013, after which he ceased to be an Indian citizen under Indian law. He allegedly concealed this fact for several years.
What government benefits did he allegedly receive after acquiring British citizenship?
He allegedly continued to serve as an assistant teacher at a government-aided madrasa in Mubarakpur, Azamgarh, drawing salary until he took voluntary retirement in 2017, after which he received a regular pension. The total amount credited to his account from the state exchequer was ₹53.46 lakh, including salary, pension, and GPF.
What documents did he allegedly misuse?
The ED alleges he used his surrendered Indian passport along with PAN, Aadhaar, and Voter ID documents to purchase immovable properties in Sant Kabir Nagar district, despite having renounced Indian citizenship.
What happens after a provisional PMLA attachment?
A provisional attachment under PMLA must be placed before the Adjudicating Authority within a statutory timeframe for confirmation. The case against Shamsul Huda Khan and other named individuals remains under active investigation by the ED's Lucknow Zonal Office.
