Crime
US-Based Entity Under Scanner in Foreign Debit Card Investigation
A case has been registered against a US-based organisation and six others after the Enforcement Directorate alleged that foreign funds worth over ₹92 crore were illegally channelled and utilised across India through foreign debit cards, including in Left Wing Extremism-affected areas.
A criminal case has been registered against a US-based organisation and six other individuals following a complaint filed by the Enforcement Directorate (ED) alleging the illegal utilisation of foreign funds through a network of foreign-issued debit cards across India.
Based on the ED’s complaint, the Kothanur Police Station in Bengaluru registered the case on June 11 under various provisions of the Bharatiya Nyaya Sanhita (BNS) and the Unlawful Activities (Prevention) Act (UAPA).
According to the ED, the investigation uncovered an elaborate mechanism through which funds originating from abroad were allegedly withdrawn and used within the country, including in areas affected by Left Wing Extremism (LWE).
Searches Uncover Alleged Financial Network
The ED stated that searches conducted on April 18 and 19 under the provisions of the:
- Income Tax Act, and
- Foreign Exchange Management Act (FEMA)
revealed evidence suggesting that the accused had operated in association with a US-based entity.
Investigators alleged that the group used foreign-origin debit cards issued by an American bank to access and utilise overseas funds at multiple locations across India.
₹92.55 Crore Allegedly Utilised
According to the agency, a total of approximately ₹92.55 crore was allegedly withdrawn and utilised between November 2025 and April 2026.
The ED has claimed that these transactions were carried out in violation of the provisions of:
- The Foreign Exchange Management Act (FEMA), and
- The Foreign Contribution (Regulation) Act (FCRA).
The FCRA regulates the acceptance and utilisation of foreign contributions by individuals, associations, and organisations to ensure transparency and prevent misuse of overseas funds.
Focus on Left Wing Extremism-Affected Areas
One of the significant aspects of the investigation is the allegation that a portion of the funds was utilised in Left Wing Extremism-affected regions, raising concerns among investigators regarding the nature and purpose of the financial transactions.
The invocation of provisions under the Unlawful Activities (Prevention) Act indicates that authorities are examining whether the alleged activities had any implications for national security or unlawful operations.
Investigation Continues
Officials said the FIR marks the beginning of a detailed criminal investigation into the alleged financial network.
Investigators are expected to probe:
- The identities and roles of the six accused individuals,
- The operational links with the US-based organisation,
- The origin and intended use of the foreign funds,
- The extent of transactions conducted through the debit cards,
- Possible violations of financial and security laws.
Authorities have not yet disclosed the name of the US-based entity involved in the case.
The ED is likely to continue its investigation in coordination with other enforcement and intelligence agencies to determine the full scope of the alleged violations.
The case highlights the increasing scrutiny on cross-border financial transactions and the enforcement of regulations governing foreign contributions and currency management in India.