Zakir Naik created dummy firms to cover up funds received through hate speeches

An Enforcement Directorate investigation has revealed that doctor-turned-televangelist Zakir Naik had created dummy companies in India and abroad to camouflage the diversion of funds received by him through his provocative speeches. The sources of funds are under suspicion as the donors were mostly anonymous.

Dr Zakir Naik is the President of the Islamic Research Foundation (IRF) and was allegedly receiving funds in the form of zakat (donations) from various sources from India and abroad, including countries like the UAE, Saudi Arabia, Bahrain, Kuwait, Oman, Malaysia, etc.

HERE IS ALL YOU NEED TO KNOW

1. Sources said the funds were received through banking channels. However, the donors remained unidentified as their names in the receipts are mentioned as “well wishers”.
2. During the course of the investigation, it was revealed that the IRF was having various accounts in which the donations were deposited or transferred. The bank accounts were held with Citi Bank, DCB Bank Limited and the Union Bank of India.
3. In cash receipts also, only the names of the donors are mentioned on the receipts without disclosing their contact details, which raises suspicion of bogus or sham entries.
4. The ED investigation has revealed that donations from unknown sources were apparently in response to the “hate speeches” made by Zakir Naik.
5. Therefore, the donations received in response to the provocative speeches made by Naik in the IRF are prima facie proceeds of the crime emanating from the scheduled offences.
6. However, Naik’s lawyer Mobeen Solkar said, “The speeches were not inflammatory or provocative. Even if it is assumed they were, the offence falls under Section 153 A of the Indian Penal Code, which is not a scheduled offence. The provisions of the PMLA (Prevention of Money Laundering Act) can only be invoked in cases of scheduled offences. The proceedings are unwarranted and unjustified.”
7. Moreover, the investigation has also revealed that the IRF made a huge amount of money, which was handed over by Naik to his confidante Aamir Gazdar, who was also one of the directors of the six companies controlled by Naik. The companies are Universal Broadcasting Corporation Ltd in England, Lords Production Inc Ltd in England, Harmony Media Pvt. Ltd in Mumbai, Longlast Contructions Pvt. Ltd in Mumbai, Majestic Perfumes Pvt. Ltd in Mumbai and Alpha Lubricants Pvt. Ltd in Mumbai.
8. The Enforcement Directorate claims that some of these companies were dummy companies established by Naik in India and abroad to camouflage the diversion of funds received by him through his “illegal activities of provocative speeches.”
9. A company by the name of Harmony Media Pvt. Ltd was incorporated by Naik and his relatives. The said company was engaged in production of Naik’s speech videos. It was found that while the speeches were delivered by Naik, the financial proceeds were claimed by Harmony.
10. However, no amount had been paid by way of royalty or remuneration to Naik. So there appears to be an intrinsic link between Harmony and Naik. He is indirectly controlling the said company as gathered by recorded statements of persons examined in this connection.
11. ED has concluded thus the money so made is the proceeds of crime. The agency issued four summons to Naik but the same were returned undelivered with a remark “not claimed.”
12. Naik fled the country and has not returned to India ever since his name had surfaced in the investigation of the terrorist attack in Holey Artisan Bakery restaurant in Gulshan Diplomatic area of Dhaka, where 22 people were killed. A police investigation revealed that the perpetrators were influenced by Naik’s speeches.
13. Naik’s lawyer Mobeen adds, “All allegations are baseless. We have cooperated in the investigation. The ED has already arrested one person. None of the companies are dummy companies. Some of them were already doing business and others were about to start theirs.”

Source : India Today