Clandestine Funding Greatest Threat To National Security : Karnataka High Court

Bengaluru: The Karnataka High Court has dismissed a petition challenging the FIR registered by the Karnataka Police under anti-terror laws against The Timothy Initiative, a US-based global Christian missionary organisation, Micah Mark and others over allegations that they financed banned Left-wing extremist groups in Chhattisgarh."Therefore, this is not a case warranting the exercise of inherent jurisdiction to nip the crime in the bud. The case concerns national security. National security is the invisible architecture upon which the sovereignty, stability and constitutional order of a nation rest. One of the gravest threats to national security in the present times is the clandestine funding of extremism," Justice M. Nagaprasanna said.The

Enforcement Directorate (ED) had detained a US national at Bengaluru International Airport and seized 24 international debit cards. Investigations revealed that the debit cards had been issued by Trust Bank, USA.The ED later alleged that it had unearthed a network of financial operations linked to an entity based in the United States operating under the name The Timothy Initiative. Upon scrutiny of financial transactions, documentary material and statements recorded during the investigation and searches, the Directorate formed a prima facie opinion that international debit cards issued by Trust Bank, USA, were systematically used to withdraw funds from ATMs across India.According to the ED, between November 2025 and April 2026, funds amounting to approximately Rs 92.55 crore (US$ 9,995,240) were allegedly utilised in contravention of statutory regulations.It was further alleged that between January 2024 and March 2026, withdrawals of nearly Rs 40 crore were made from states such as Chhattisgarh and Assam using the same modus operandi. The petitioners, however, denied all the allegations.In its order, the Karnataka High Court observed, "Funding, therefore, becomes the oxygen that enables extremist movements to survive and proliferate.""The danger of extremist financing lies not merely in the money transferred, but in the consequences it unleashes. Left unchecked, such funding can transform ideological extremism into organised violence, threatening national unity and public safety. The preservation of national security, therefore, demands robust vigilance against financial channels that sustain extremism. Effective intelligence gathering, strict regulatory oversight, inter-agency coordination, and rigorous enforcement of anti-money laundering laws are essential. Institutions tasked with financial monitoring and security enforcement must act with both precision and urgency to dismantle these covert networks," the High Court said.In June, the ED wrote to the Director General of Police, Karnataka, alleging that the accused were raising funds intended for the commission of terrorist acts in Left-Wing Extremism (LWE)-affected areas and for conspiring to commit terrorist acts or acts preparatory to terrorism.In its letter to the Karnataka DGP, the ED said that cash amounting to Rs 37 lakh, withdrawn using the foreign debit cards, was seized from the premises of Ajit Verghese Mathai.The investigation further revealed unusual and suspicious cash withdrawals using these foreign debit cards in LWE-affected regions, including Dhamtari and the Bastar region of Chhattisgarh, where Rs 6.34 crore had allegedly been withdrawn over the past few years."Such emergence of a parallel cash-based economy in Naxalite-affected areas poses a serious threat to the security and financial integrity of India and can facilitate the movement of illicit funds for unlawful activities. It is pertinent to note that cash withdrawals to the tune of approximately Rs 3.2 crore (3,200 transactions of Rs 10,000 each) were made from a single AU Small Finance Bank ATM located at Vijay Plaza, Bastar Road, Dhamtari (Chhattisgarh), using two such debit cards. This raises concerns regarding the end use of the withdrawn funds. These withdrawals took place under the monitoring of Varghese Chacko, a field-level functionary residing at Blessing Home, Ward 20, Bharri Para, Sorid Nagar, Dhamtari, Chhattisgarh," the ED said in its letter to the Karnataka DGP.While dismissing the petition seeking quashing of the FIR, the Karnataka High Court observed, "Protecting national security is thus a collective constitutional obligation, and preventing the funding of extremism forms an indispensable part of that solemn duty.""The courts must therefore be circumspect in stifling investigations, particularly where allegations touch upon issues of economic subversion intertwined with national security. In the teeth of such accusations, as observed hereinabove, investigation is not merely permissible—it becomes imperative. For the aforesaid reasons, the petitions merit dismissal. Accordingly, they stand dismissed. It is, however, made clear that the petitioners remain at liberty to avail themselves of all remedies available in law should the final report eventually be filed against them," Justice Nagaprasanna said in the order.