How Delhi’s Lajpat Nagar Became A Secret Nerve Center Of LeT’s Pakistan-Backed Finance Network

An alleged Pakistan-backed LeT terror funding network has been busted in Delhi, exposing how sleeper cells used cash couriers, business fronts and fake identities to move funds across India.

Shalimar Textiles at Delhi's Lajpat Nagar (Photo: Syed Khalid Hussain)

Srinagar/New Delhi: A joint operation by the Jammu & Kashmir Police’s Counter-Intelligence Kashmir (CIK) and the Delhi Police has uncovered an alleged terror funding network in New Delhi. The sting targeted ‘Shalimar Textiles’ in Lajpat Nagar, which, officials say, functioned as a front for cross-border financial channels linked to Lashkar-e-Taiba (LeT).

The crackdown led to the arrest of two individuals: Mohammad Ayoub Bhat, a resident of Budgam who is the owner of Shalimar Textiles, and Mohammad Rafiq Shah, who belongs to SDA Colony at Bemina in Srinagar. Both are alleged to be key players in the operation.

An FIR (No. 02/2024) was filed at the CIK Srinagar Police Station under multiple sections of the Unlawful Activities (Prevention) Act (UAPA), including Sections 13 (unlawful activities), 38 (membership of a terrorist organisation), 39 (support to terrorist organisation) and 40 (raising funds for terrorist organisation), as well as Section 120-B of the Indian Penal Code for criminal conspiracy. Search warrants were issued by a Special Judge under the NIA Act.

Hawala Route, Foreign Handlers and Gulf Channels

Officials said they seized evidence indicating that funds were being funneled from across the Line of Control (LoC), with handlers operating from Pakistan and Gulf countries. These funds reportedly made their way into India allegedly through pilgrims, businessmen and expatriates, before ultimately being sent to Jammu and Kashmir-based militants.

According to the investigators, Shalimar Textiles was used as a cover by Bhat to mask the financial flows. The business, they allege, was embedded in a wider terror finance apparatus. Investigators also claimed to have identified Shah as Bhat’s associate in the financing network.

Digital Evidence and Encrypted Communications

Sources involved in the probe revealed the recovery of substantial digital evidence. This includes encrypted chats with alleged terror affiliates, foreign remittance records routed through hawala networks and communications with Pakistani handlers.

Officials say several electronic devices and documents were seized and will undergo detailed forensic analysis.

Supported by technical leads and alleged confessions, the CIK operation prompted multiple raids, including those in the national capital.

The Delhi Police joined in the searches, which officials claim yielded critical digital and documentary evidence.

Wider Network Under Scrutiny

The arrests are part of a broader effort to dismantle an international terror financing chain, which officials say, includes links to Gulf-based sympathisers, over ground workers (OGWs) in Kashmir and Pakistani handlers. The funding reportedly passed through couriers before reaching militants operating in Jammu & Kashmir.

Interrogations are currently underway, and investigators say the evidence will help identify additional nodes in the network.

'No More Safe Havens'

Security officials emphasised that the crackdown is part of a larger nationwide effort to cripple the financial arms of terrorism. “Terror networks will not be allowed to flourish in Srinagar or Delhi,” they said, highlighting the operation’s significance in India’s broader counter-terror strategy.

The investigation is ongoing. Authorities stress that they are committed to dismantling not only militant groups but also the financial facilitators and channels that sustain them.

This operation marks a significant milestone in India’s battle against terror financing, potentially setting the stage for further crackdowns across the country.