Srinagar, June 13: The National Company Law Tribunal (NCLT) has appointed a provisional liquidator for Siraj-Ul-Uloom Welfare Foundation and restrained it from disposing of assets after observing that there was a prima facie case that the institution had been used for activities “prejudicial to the sovereignty, security and integrity of India.”
The order, passed by the Chandigarh Bench of the NCLT on June 11, came on a petition filed by the Registrar of Companies (RoC), Jammu & Kashmir and Ladakh, under Sections 271 and 272 of the Companies Act seeking winding up of the Section 8 Company.
The tribunal directed that the Official Liquidator attached to the High Court of Jammu & Kashmir and Ladakh take immediate charge of the affairs, assets, bank accounts, financial records and documents of the company pending further proceedings.
The tribunal directed the company’s directors and officers to submit a detailed statement of assets and liabilities within 30 days.
The action follows the Jammu and Kashmir administration’s recent declaration of Siraj-ul-Uloom as an unlawful entity under the UAPA, making it the first seminary in J&K to face such action. Authorities had alleged that the institution maintained “covert linkages” with the banned Jamaat-e-Islami (JeI), besides accusing it of serious legal, administrative and financial irregularities and fostering an atmosphere conducive to radicalisation.
The ban of the seminary had triggered protests in south Kashmir’s Shopian district. Hundreds of students and parents had taken to the streets demanding reopening of the institution and restoration of academic activities.
According to the NCLT order, the case originated from a report submitted by the Criminal Investigation Department (CID) of J&K Police which flagged the activities of the foundation as fraudulent and violative of its stated objectives and prejudicial to the sovereignty and integrity of India..
Following the CID report, the Director General of Corporate Affairs in the Ministry of Corporate Affairs, through a communication in March, directed the Regional Director (NR-II), Chandigarh, to initiate proceedings under Section 272 of the Companies Act for closure of the entity. The communication also instructed authorities to take appropriate steps for freezing and attachment of assets belonging to the directors and key managerial personnel (KMPs) of the organisation.
The tribunal noted that the material on record prima facie showed that the company was incorporated in April 2025 “immediately following the denial of security clearance to the institution in its prior avatars,” while actual management allegedly continued to remain with individuals linked to JeI.
The order further recorded that the management, in its representations before authorities, admitted that records and activities were maintained in the names of older trust entities alongside the Section 8 company, which the tribunal said indicated deliberate “commingling and obfuscation” of identities to evade scrutiny.
The matter has now been listed before the tribunal for further hearing on July 13.
