Rajasthan CID arrests ISI funding agent in espionage money trail probe
Synopsis
Rajasthan's CID (Intelligence) has cracked open an ISI funding trail, arresting a Maharashtra resident who allegedly routed Pakistan spy payments through multiple bank accounts over four years. With an Air Force staffer and a Jaisalmer man already in custody, this is the third arrest in a case that stretches from Rajasthan's border districts to an Assam air base.
Key Takeaways
Rafiq Chand Shaikh , a resident of Harsul, Aurangabad (Maharashtra) , was arrested on 30 June by Rajasthan CID (Intelligence) for allegedly operating an ISI funding channel.
Shaikh allegedly maintained contact with an ISI handler for nearly four years and opened multiple bank accounts to route funds to espionage suspects.
Earlier arrests in the same case include Jhabra Ram of Jaisalmer and Sumit Kumar , an MTS employee at the Indian Air Force Station, Dibrugarh, Assam .
The case is being investigated under the Official Secrets Act, 1923 .
The probe is ongoing; authorities are examining additional financial transactions and possible links to others in the alleged network.
Rajasthan Police's CID (Intelligence) has arrested a man accused of operating a covert funding channel for Pakistan's Inter-Services Intelligence (ISI), officials said on Thursday, 2 July, in what investigators are describing as a significant breakthrough in an ongoing espionage case. The accused, Rafiq Chand Shaikh, son of Chand Miyan Shaikh and a resident of Harsul in Maharashtra's Aurangabad district, was taken into custody on 30 June following a detailed financial investigation.
Who Was Arrested and What He Allegedly Did
According to CID (Intelligence) officials, Rafiq Chand Shaikh allegedly facilitated the transfer of funds from ISI handlers to individuals suspected of conducting espionage activities inside India. Investigators allege he had been in contact with an ISI handler for nearly four years, acting on instructions relayed through social media platforms.
Officials stated that Shaikh allegedly opened multiple bank accounts — both in his own name and in the names of other individuals — to route payments to suspected operatives. The arrest was made after investigators verified the alleged financial transactions and established his purported role in the network.
Earlier Arrests in the Same Case
The current arrest is part of a wider investigation being conducted under the Official Secrets Act, 1923. Two individuals had previously been detained in connection with the same case: Jhabra Ram, a resident of Jaisalmer, Rajasthan, and Sumit Kumar, a Multi-Tasking Staff (MTS) employee posted at the Indian Air Force Station in Dibrugarh, Assam. Both are accused of passing sensitive information related to the Indian armed forces to ISI handlers.
Notably, it was during the sustained interrogation of these earlier accused that investigators traced the financial trail back to Shaikh, identifying him as the conduit through whom ISI money was allegedly routed.
The Financial Trail
CID (Intelligence) officials said the money allegedly sent by ISI operatives — in exchange for classified military information — was routed through Shaikh before reaching the suspected operatives. The use of multiple bank accounts across different names points to a deliberate effort to obscure the origin and destination of the funds, according to investigators.
This comes amid a broader pattern of ISI-linked funding networks being dismantled by Indian security agencies in border states, with Rajasthan's proximity to Pakistan making it a recurring theatre for such operations.
Investigation Status and What Comes Next
According to CID (Intelligence), the probe is ongoing. Officials are conducting a detailed examination of other individuals who may be connected to the alleged ISI funding network, and are scrutinising additional financial transactions to map the full extent of the operation. Authorities have indicated that further arrests cannot be ruled out as the investigation deepens.
The case underscores the continued vulnerability of defence personnel and civilian intermediaries to ISI-linked recruitment and financial inducement operations — a concern that Indian intelligence agencies have flagged repeatedly in recent years.
Point of View
A colonial-era statute from 1923, remains an adequate legal instrument for prosecuting modern digital espionage. India's intelligence establishment has repeatedly flagged ISI recruitment of low-level defence personnel through financial inducement; the Dibrugarh Air Force connection in this case is a reminder that the vulnerability persists at the base level, not just at command.
NationPress
2 Jul 2026
Frequently Asked Questions
Who is Rafiq Chand Shaikh and why was he arrested?
Rafiq Chand Shaikh is a resident of Harsul in Maharashtra's Aurangabad district, arrested on 30 June by Rajasthan CID (Intelligence) for allegedly acting as a financial intermediary for Pakistan's ISI. He is accused of routing ISI funds to individuals suspected of espionage inside India through multiple bank accounts over a period of nearly four years.
What is the Official Secrets Act, 1923, under which this case is registered?
The Official Secrets Act, 1923 is an Indian law that criminalises the disclosure of information that could be useful to an enemy or prejudicial to the safety of the state. It is the primary statute used to prosecute espionage and the unauthorised communication of sensitive government information in India.
Who else has been arrested in this espionage case?
Two others were arrested earlier in the same investigation: Jhabra Ram, a resident of Jaisalmer in Rajasthan, and Sumit Kumar, a Multi-Tasking Staff employee at the Indian Air Force Station in Dibrugarh, Assam. Both are accused of passing sensitive information related to the Indian armed forces to ISI handlers.
How did the ISI allegedly transfer money to espionage operatives in India?
According to CID (Intelligence) officials, ISI handlers allegedly used Rafiq Chand Shaikh as a conduit, with instructions passed through social media platforms. Shaikh allegedly opened multiple bank accounts in his own name and in the names of others to layer and route the funds to suspected operatives.
Is the investigation still ongoing?
Yes, the Rajasthan CID (Intelligence) has confirmed the investigation is continuing. Officials are examining additional financial transactions and probing other individuals who may be connected to the alleged ISI funding network, with further developments expected.
