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On Tuesday in a Delhi Court, opposing the bail petition of Kashmiri separatist leader Shabbir Shah in terror funding case, the Enforcement Directorate (ED) said that the present case discloses the commission of a serious crime where the accused is involved in the "generation of huge proceeds of crime from various countries including Pakistan to create unrest in Kashmir".

In its reply filed in response to the bail petition being heardbefore Additional Sessions Judge Dharmendra Rana, the enforcement agency went on to say that Shabir Shah was in regular touch with banned terrorist outfit Jamat-ud-Dawa (JuD) chief Hafiz Saeed. Shabir Shah was also in touch with MohdShafi Shayar, who belongs to Kashmir and had escaped to Pakistan along with his family after his release from Central Jail Jammu, ED added.

ED further stated that,

"Shabbir Shah was also involved in terror financing activities as terrorists need money to sustain themselves and to carry out terrorist acts. Money-laundering is the method by which criminals disguise the illegal origins of their wealth and protect their asset bases, so as to avoid the suspicion of law enforcement agencies and prevent leaving a trail of incriminating evidence."

The separatist leader recently had moved the bail application for grant of bail invoking the provisions of sec 436A of the Code of Criminal Procedure on the ground that he has undergone half of the sentence prescribed for the offence of Money Laundering under section 4 of The Prevention of Money Laundering Act, 2002 (PMLA). The bail petition also stated that Aslam Wani, co-accused in the matter is already granted bail and Shah is also suffering from various health issues.

In its response to the bail petition ED said,

"There are serious allegations against the applicant and further investigation in the matter is going on and the properties are being identified. The money trail is trying to be established. Further investigation in relation to the origin is being carried out. Call records leading to Pakistan are being scrutinized including mails and the donors who have paid the money to the applicant are to be identified and examined. If the applicant accused is released on bail at this juncture the entire efforts of the respondents to unearth the large conspiracy would be a futile exercise".

The first case against the separatist leader was registered in 2007 for the alleged money laundering committed in 2005 for the purpose of terror financing. He was arrested by the ED on July 25, 2017, in connection with the 2005 case. In another case, the NIA took Shah in custody in June 2019 in connection with its probe into a separate terror funding case involving Hafiz Saeed, the alleged mastermind of the 2008 Mumbai terror attack.

On Tuesday, Shah’s lawyer did not appear for the arguments due to personal difficulty. Additional Sessions Judge 

Judge Dharmendra Rana adjourned the hearing for June 29.