Journalist Rana Ayyub's $1.77 crore frozen in a money laundering case

The Enforcement Directorate, or ED, has seized 1.77 crores belonging to journalist Rana Ayyub, a vociferous opponent of the ruling BJP. She is suspected of money laundering and swindling monies collected for humanitarian purposes.

The agency had issued a temporary order under the Prevention of Money Laundering Act (PMLA) to attach a fixed deposit and bank accounts in her and her family's names, according to agency sources. When a property is attached, it cannot be transferred, converted, or relocated.

Ms. Ayyub has yet to respond to these charges.

The money laundering complaint against Ms. Ayyub is based on a First Information Report (FIR) submitted by Vikas Sankrityayan, the founder of the "Hindu IT Cell" NGO and a resident of Indirapuram in Ghaziabad, with the Uttar Pradesh's Ghaziabad Police in September.

Ms. Ayyubs account, "Funds totalling ₹ 2,69,44,680 were raised on Ketto by Rana Ayyub. These funds were withdrawn in the bank accounts of her sister and father," the Enforcement Directorate's note said, adding that the entire amount was subsequently "transferred."

Ms. Ayyub provided expense paperwork to the ED for roughly 31 lakh, but the agency stated that after verifying the claimed expenses, it discovered that the actual expenses were only 17.66 lakh.

"Fake bills were found to have been prepared by Rana Ayyub in the name of some entities to claim expenses on relief work. Expenses made for personal travel by air were claimed as expense for relief work," it says.

The investigation "clearly demonstrates that the funds were raised in the name of charity in a thoroughly pre-planned and methodical manner and that the funds were not used entirely for the purpose for which the funds were raised," according to the agency.

It went on to say that Ms. Ayyub used the money received on the web platform to set up a fixed deposit of Rs 50 lakh, which she "did not use" for relief efforts.

Ms. Ayyub also "deposited a total of 74.50 lakh in PM CARES fund and CM Relief Fund," according to the agency.

The money was obtained as part of three campaigns, according to the FIR: funds for slum dwellers and farmers in April-May 2020; relief work in Assam, Bihar, and Maharashtra in June-September 2020; and assistance for Covid-19-affected persons in India in May-June 2021.

“Funds totalling Rs 2,69,44,680 were raised on Ketto by Rana Ayyub. These funds were withdrawn in the bank accounts of her sister and father,” the agency says.

Out of this amount, Rs 72,01,786 was withdrawn in her own bank account, Rs 37,15,072 withdrawn in her sister Iffat Shaikh’s account, and Rs 1,60,27,822 was withdrawn in her father Mohd Ayyub Waquif’s bank account, it said.

“Fake bills were found to have been prepared by Rana Ayyub in the name of some entities to claim expenses on relief work. Expenses made for personal travel by air were claimed as expense for relief work.”

“Makes it abundantly clear that the funds were raised in the name of charity in a completely pre-planned and systematic manner, and the funds were not utilised completely for the purpose of which the funds were raised,”the ED said.

It further said, “Instead of utilizing the funds for the relief work, Rana Ayyub parked some of the funds by opening a separate current bank account.”

It went on to say that Ayyub used the money generated on the web platform to set up a Rs 50 lakh fixed deposit, which he then "did not use" for relief operations.

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