ED likely to file charge sheet against SDPI over funding

If filed, SDPI would become the third registered political party to be arraigned as an accused under the Prevention of Money Laundering Act (PMLA) following similar action against AAP

The Enforcement Directorate (ED) is likely to file a charge sheet against the Social Democratic Party of India (SDPI) — the political wing of the now-banned Popular Front of India (PFI) — as part of its probe into the party’s funding, people familiar with the matter said.

In March, ED arrested SDPI national president Moideen Kutty K. (X)

If filed, SDPI would become the third registered political party to be arraigned as an accused under the Prevention of Money Laundering Act (PMLA), following similar actions against the Aam Aadmi Party (AAP) and the Communist Party of India (Marxist) or CPI(M)] under separate investigations.

AAP was charge-sheeted last year along with its national convener, Arvind Kejriwal, in connection with the Delhi excise policy case, in which the party was alleged to be a major beneficiary of the proceeds of crime. In May this year, CPI(M) was named an accused in the 2021 Karuvannur Cooperative Bank money laundering case. In both instances, the ED invoked Section 70 of the PMLA, which deals with offences by companies, arguing that political parties fall within the legal definition of a “company.”

In March, ED arrested SDPI national president Moideen Kutty K, also known as MK Faizy, alleging that the party continues to propagate the ideology and agenda of the banned PFI and receives funding from it. Extensive raids were also conducted at the residences and offices of several SDPI members.

Founded in 2009, SDPI is a registered political party with the Election Commission of India.

“Our investigation is almost complete, and a charge sheet is being prepared in which SDPI is most likely to be named as an accused under the PMLA very soon,” said an officer familiar with the matter, speaking on condition of anonymity. “There is compelling evidence suggesting that PFI used to control, fund, and supervise the activities of SDPI. The latter functioned as a front for PFI, with overlapping leadership and cadres. SDPI relied on PFI for its daily operations, policymaking, candidate selection for elections, public programmes, cadre mobilisation, and related activities.”

So far, ED has identified proceeds of crime worth ₹4.07 crore, allegedly transferred from PFI to SDPI.