A special National Investigation Agency (NIA) court has ordered the framing of money laundering charges against separatist leader Yasin Malik and six others in a case concerning alleged routing of Pakistani and foreign funds through hawala channels to finance secessionist activities in Jammu and Kashmir. The court held that there was sufficient material on record to raise a “strong suspicion” against all seven accused for an offence under Section 3 of the Prevention of Money Laundering Act (PMLA), which is punishable under Section 4 of the law. The order was passed on September 9 and was made available on Thursday. The court’s finding relates to the threshold for framing charges and does not by itself amount to a final determination of guilt.
Special NIA Judge Prashant Sharma of the Rouse Avenue Courts said the material placed before the court was sufficient to raise a prima facie case against the seven accused under the anti-money laundering law. The proceedings concern allegations that funds originating from Pakistan and other foreign sources were brought into India through hawala channels and subsequently used to support separatist activities in Jammu and Kashmir. The Enforcement Directorate is pursuing the money-laundering aspect of the case, while the broader allegations involving separatist activities have been investigated by central agencies. The court’s order allows the prosecution to proceed to the next stage of the trial on the charges that have now been framed.
The formal process of framing the charges was not completed through the physical appearance of Malik and the other accused in court because of security concerns. Malik and the other accused are in judicial custody and could not be produced physically before the court on Wednesday. Judge Sharma instead directed the Enforcement Directorate to obtain their signatures on the formal documents relating to the framing of charges. The court has fixed October 30 as the next date of hearing. The procedure is part of the formal progression of the case after the court examined the material submitted by the prosecution and concluded that there was sufficient basis to proceed against all seven accused.
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The allegations against Malik relate to a wider set of cases concerning alleged financing of separatist activities in Jammu and Kashmir. Malik, who headed the Jammu Kashmir Liberation Front (JKLF), has been serving a life sentence after being convicted in a separate 2017 terror-funding case. In May 2022, a special NIA court sentenced him to life imprisonment for offences including criminal conspiracy and raising funds for terrorist activities. Malik had pleaded guilty to several charges in that case but denied charges relating to terrorism and waging war against the state. His legal proceedings have continued in several other cases involving alleged militancy and separatist activities.
The latest money-laundering proceedings are separate from other criminal cases in which Malik has been named. In June 2026, the State Investigation Agency filed a 737-page chargesheet in a Srinagar court naming Malik as a key accused in the abduction and killing of Kashmiri Pandit nurse Sarla Bhat in 1990. Malik has denied involvement in Bhat’s killing and said he learned about the murder months after it occurred. That case is continuing separately from the PMLA proceedings in Delhi.
The framing of charges in the money-laundering case therefore marks another stage in the long-running legal proceedings involving Malik and other accused. The court’s observation that there was a “strong suspicion” is a finding at the charge-framing stage and is distinct from a final verdict after evidence is presented and tested during trial. The accused will have the opportunity to contest the allegations as the proceedings continue. With the Enforcement Directorate directed to complete the formalities for the accused currently in custody, the case is scheduled to come up again before the Rouse Avenue court on October 30.
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