Shopian: The National Company Law Tribunal (NCLT) has appointed a provisional liquidator to take charge of the affairs and assets of Shopian-based Siraj-ul-Uloom Welfare Foundation after observing that material placed before it prima facie disclosed activities “prejudicial to the sovereignty, security and integrity of India”.
The Chandigarh Bench of the NCLT, comprising Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal, passed the interim order on a petition filed by the Registrar of Companies (RoC), Jammu and Kashmir and Ladakh, under Sections 271(b) and 272 of the Companies Act, 2013.
The tribunal directed freezing of the company’s assets and restrained it, its directors and officers from selling, transferring or alienating any property or funds without prior permission of the Bench.
Siraj-ul-Uloom Welfare Foundation, incorporated as a Section 8 company on April 18, 2025, has its registered office at Hillow Imam Sahib in Shopian and was set up for charitable and educational activities.
According to the tribunal order, the proceedings were initiated following a report submitted by the Criminal Investigation Department (CID), Jammu and Kashmir, on March 6 this year.
The Bench noted that the CID report alleged that the company’s activities were “fraudulent”, “violative of its stated objects”, and “prejudicial to the sovereignty and integrity of India”.
Following the report, the Ministry of Corporate Affairs directed initiation of proceedings under the Companies Act and sought steps towards freezing and attachment of assets of directors and key managerial personnel, the order said.
The tribunal also referred to a show-cause notice issued by the Regional Director, Chandigarh, alleging “anti-national” and “secessionist” activities threatening national security.
The allegations remain contested and the winding-up petition is yet to be finally adjudicated.
The Bench observed that replies submitted before authorities indicated that records and activities of the institution were allegedly being maintained in the name of older trust entities despite operations being carried out through the Section 8 company.
According to the tribunal, this prima facie reflected “commingling and obfuscation” of multiple entities operated by the same persons.
The order also referred to earlier action by the Divisional Commissioner, Kashmir, who had declared Darul Uloom Jamia Siraj-ul-Uloom, Imam Sahib, Shopian, an “unlawful entity/place” under the Unlawful Activities (Prevention) Act (UAPA).
The institution has remained at the centre of controversy in recent months after the administration cited alleged links with the banned Jamaat-e-Islami. The move had triggered protests by students and parents demanding reopening of the institution.
After examining the petition, sealed material and related records, the tribunal said it was “prima facie satisfied” that the respondent company had been used as a vehicle for activities prejudicial to national security.
The Bench also observed that there was a “grave and real risk” of dissipation of assets and destruction of records if immediate intervention was not ordered.
Invoking its powers under the Companies Act, the tribunal appointed the Official Liquidator attached to the High Court of Jammu and Kashmir and Ladakh as provisional liquidator with immediate effect.
The liquidator has been directed to take charge of all movable and immovable assets, bank accounts, books of accounts and related records of the company and associated entities.
The company and its officers have also been directed to submit a complete statement of affairs, including details of assets and liabilities, within 30 days.
The matter has been listed for further hearing on July 13.
