'Funding Is Oxygen Enabling Extremism To Survive': Karnataka High Court Upholds UAPA FIR Against Missionary Group Accused Of Aiding Naxals

The Karnataka High Court on Wednesday (June 1) refused to quash a UAPA case lodged against the functionaries and alleged associates of a missionary group 'The Timothy Initiative'-including its India Head- accused of using over 1000 international debit cards to channel around Rs. 100 crores funds to Naxal regions. [ 2026 LiveLaw (Kar) 228]

The ED has alleged that The Timothy Initiative disbursed Rs 92.55 crore to 'Left Wing Extremism-affected' regions. 

The single judge bench of Justice M Nagaprasanna noted in the order that since the case concerns national security, investigation is warranted instead of summary quashing, the court held.

“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. …Funding 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 organized violence, threatening National unity and public safety…”, the Court observed.

The single judge bench also observed that the Enforcement Directorate (ED) has the powers under Section 66(2) [Disclosure of Information to the concerned agency] of the Prevention of Money Laundering Act (PMLA) to share information with the police for the registration of a crime expeditiously.

“…What initially appeared as a financial irregularity, upon search and seizure, allegedly revealed a far wider network. The Directorate, therefore, cannot be faulted for communicating such information to the jurisdictional police. The submission that proceedings under the FEMA empower search and seizure, but not disclosure of information to other agencies cannot be accepted. Statutes operating in cognate fields must be construed harmoniously, not in watertight compartments”, the court laid down in unequivocal terms.

The petitions were filed by Micah Mark, Jonathan S. Rajan, Ajit Verghese Mathai, Varghese Chacko, Bablu Kurmi, and Supreme Joy, all alleged as part of the Naxal foreign funding network of Timothy Initiative in India.

Background

The ED had after intercepting and seizing 24 debits cards from the organisation's head- Micah Mark- from the Kempe Gowda International Airport, sent a communication to the state's Director General of Police on 06-05-2026 requesting registration of FIR.

The petitioners have been arraigned by the police for offences under Sections 318(4), 335(a)(ii), 336(3), 238, 61(2), 190 of BNS, 2023 which involves economic offenses, document forgery, evidence tampering. In addition, the petitioners are also accused of Sections 13, 17, 18 of UAPA, 1967 which deals with unlawful activities, raising funds for terrorist acts, and conspiracy respectively.

According to the multiple communications made by ED to the Police, the cards were allegedly issued by Trust Bank, USA, which led ED to apparently unearth a network of financial operations linked to the USA based Christian Missionary organization- Timothy.

The ED's investigation allegedly revealed that funds of approximately Rs 92.5 crores was allegedly withdrawn through ATMs across India using foreign debit cards in the six months preceding April 2026. ED also suggested that during the first three months of 2026, , withdrawals nearing Rs 40 crore were allegedly effected from states including Karnataka, Chhattisgarh, and Assam.

The cards were all issued under the generic name 'Santosh Kumar' and were coded region-wise as NE-1, NE-2, Southern Region 1 etc. to overcome Know Your Customer (KYC) requirements.

Findings

ED can intimate about UAPA offences 

“…The communication dated 06-05-2026 issued under Section 66(2) of the PMLA is neither cryptic nor perfunctory. It is a detailed dossier narrating the alleged modus operandi of the accused, the flow of foreign funds, the manner of ATM withdrawals, and the suspected channelization of such funds into regions afflicted by Left Wing Extremism (LWE)….”, the court perused the letter and concluded.

Adding further about the necessity of taking action based on ED's communication, the court further adds:

“…The communication records, in unmistakable terms, a prima facie opinion that the activities complained of may attract offences not merely under economic statutes, but also under UAPA, as they allegedly facilitate movement of foreign funds into Naxal affected regions, thereby posing a threat to the sovereignty, territorial integrity, and internal security of the nation”.

The petitioners' argument that ED can share information or communication under Section 66 only in relation to offences strictly under PMLA was not accepted by the court.

Section 66(2) of PMLA carves out a scenario where, if the ED is satisfied on the basis of information or material in its possession that the provisions of any other law are being violated, it can share the information with the concerned agency for necessary action. The court noted that the communication clause in Section 66 of PMLA did not have a bar on intimating about UAPA offences.

“…The statutory architecture is clear: the provision is intended to ensure that information uncovered in the course of investigation under one enactment does not remain siloed where it reveals infractions under another….Statutory interpretation cannot be so myopic as to defeat the plain purpose of the enactment…”, the court further said.

Preservation of National Security demands robust intelligence

On invoking Sections 13, 17 and 18 of the UAPA against petitioners, the court said that there existed prima facie material to justify investigation.

“…The material presently available, particularly the communication under Section 66(2), cannot be said to be so barren as to warrant judicial interdiction. Any deeper scrutiny at this stage would risk trenching upon the domain of investigation and potentially prejudicing either side”, the court clarified.

The court also refused to entertain the defence taken by some of the petitioners that they were not acquainted with the organisation or its lead.

“…Accused No.2 himself in his petition avers that it is the case of the 2nd respondent that one Ajit Varghese Mathai, accused No.3 was in charge of financial operations of “The Timothy Initiative” and Jonathan S. Rajan was the person who oversaw overall operations of the Initiative in India and while other accused persons allegedly facilitated ATM withdrawals…This may be the narration of allegation, but the link in the chain of events is established in the communication made under Section 66(2) of PMLA”, the court emphasised.

Before parting, the court also highlighted the importance of institutions and agencies in the financial and security realm being vigilant about dismantling these 'covert networks'.

“…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….Protecting National security is thus a collective constitutional obligation, and preventing the funding of extremism forms an indispensable part of that solemn duty”, the court said.

The court, hence, dismissed all the petitions after reserving the liberty for them to approach the court again when the final report is submitted.

Case Title: Micah Mark & Ors. v. State of Karnataka & Connected Matters

Case Nos: Criminal Petition No. 8401/2026 & Criminal Petition No. 8417/2026

Citation: 2026 LiveLaw (Kar) 228

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