A dramatic investigation by the Uttar Pradesh Anti‑Terrorism Squad (ATS) and the Enforcement Directorate (ED) has peeled back the layers of what could be one of India’s most sophisticated religious conversion and money‑laundering cases. Jalaluddin Shah, popularly known as Chhangur Baba—a self‑styled Sufi preacher from Balrampur—stands accused of orchestrating a sprawling conspiracy involving foreign transfers, illegal real estate, and coercive conversions.

The ATS says nearly ₹500 crore flooded his network over three years, with ₹200 crore officially traced and a staggering ₹300 crore routed through Nepal via illegal hawala channels. Agents in Kathmandu, Nawalparasi, Rupandehi, and Banke allegedly opened some 100 bank accounts, taking 4–5% commission while funneling money—deposited through CDMs—across the porous border. Local exchangers transformed Nepali rupees into Indian currency, which funded operations in Balrampur, Shravasti, Bahraich, Lakhimpur, and nearby Ayodhya, where vulnerable Hindu girls were allegedly targeted for conversion.

Chhangur Baba’s financial web extended across 40 bank accounts tied to him and associates like Neetu (aka Nasreen), Naveen Rohra, and his son Mehboob. The ED uncovered ₹106 crore in suspicious transfers from Middle Eastern countries, later amending the figure to ₹51 crore specifically earmarked for enticing conversions. Homes, luxury vehicles, and a ₹16 crore land deal in Pune—all registered under proxies—surfaced during searches.

Authorities demolished his illegally constructed mansion—a three‑bigha, 70‑room fortress valued at ₹3–5 crore—built on government land in Madhpur. Complete with CCTV, electrified walls, a private power station, and plush furnishings, it was brought down in a three‑day operation involving 10 bulldozers. The spectacle drew emotional responses from villagers and officials alike as the ATS seized documents and records, adding fuel to the ongoing probe.

The money‑laundering trail through Nepal is particularly damaging for Kathmandu. With over 100 border accounts implicated, questions loom over Nepal’s regulatory oversight and its vulnerability to transnational criminal networks—factors that could tarnish its international reputation. Foreign policy analysts warn that if Nepal remains a hub for covert fund flows to India, it risks undermining its global standing and regional trust.

Public reaction has been bitter. In Uttar Pradesh, Chief Minister Yogi Adityanath labeled the operation “anti‑national,” while local women’s groups demanded protective measures for conversion victims. Meanwhile, human rights advocates call for broader investigations into coercion tactics, including “love jihad” schemes that exploited caste‑based ‘rate cards’—₹15–16 lakh for Brahmin girls, ₹10–12 lakh for OBCs, and ₹8–10 lakh for others.

On July 5, ATS arrested Chhangur Baba and Neetu in Lucknow. They were remanded to ED and ATS custody for interrogation into their money flows, real estate holdings, and conversion network. The ED filed a case under the Prevention of Money Laundering Act (PMLA), and agencies have demanded a decade of income tax records from the accused. Investigators are now probing offshore accounts in Sharjah, Dubai, and the UAE.

This scandal raises profound questions: How did Nepal’s financial system become a conduit for such massive illicit flows? Can victims of conversion be identified and supported now? And can India and Nepal rebuild trust while fortifying their shared border against transnational crime?

Chhangur Baba Nepal Medical College