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Home/Business/Companies/NCLT Orders Kashmir’s Siraj-ul-Uloom Fou…

NCLT Orders Kashmir’s Siraj-ul-Uloom Foundation Wound Up

Companies
By ThePip Desk•
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A stone building with a wooden gate secured by a padlock and chain. A faded sign on the gate reads "Siraj-ul-Uloom Welfare Foundation."

Entrance to the Siraj-ul-Uloom Welfare Foundation, Shopian, South Kashmir

Key Highlights

NCLT orders winding up of Siraj-ul-Uloom Welfare Foundation in Kashmir, declared unlawful under UAPA for posing security threats. Liquidator appointed.

Kashmir Foundation Faces Winding-Up Order

The National Company Law Tribunal (NCLT) has ordered the winding up of Siraj-ul-Uloom Welfare Foundation, a non-profit in Shopian, South Kashmir. This move follows the institution’s declaration as an unlawful association under the Unlawful Activities (Prevention) Act (UAPA).

A provisional liquidator has been appointed to manage its assets and affairs. The decision by the NCLT’s Chandigarh Bench, issued on June 11, came nearly two months after the UAPA declaration.

Key Actions Taken by NCLT

  • The of Companies (RoC), Jammu and Kashmir and Ladakh, petitioned under Sections 271 and 272 of the Companies Act.
  • The Official Liquidator, also serving as RoC J&K and Ladakh, will control the company’s bank accounts, financial assets, and properties.
  • All financial and physical assets are mandated to be frozen.
  • Records must be secured to prevent tampering or removal.
  • Former directors are divested of powers and must submit a verified statement of affairs.

Allegations of Fraud & Security Threat

Proceedings were initiated based on a Crime Investigation Department (CID) report from Jammu and Kashmir Police. The report alleged fraudulent activities that deviated from stated objectives and posed a threat to India’s sovereignty, integrity, and security.

The Ministry of Corporate Affairs directed winding-up proceedings and asset freezing for directors in March. The NCLT noted the company’s incorporation in April 2025, after its previous form was denied security clearance.

Allegations also suggest management and control remained with individuals linked to Jamaat-e-Islami (JeI). The tribunal highlighted admissions of maintaining records under earlier trust entities alongside the Section 8 company, seen as an attempt to obscure identity and avoid oversight.

Broader Enforcement & Next Steps

On April 27, the Divisional Commissioner, Kashmir, had already declared Siraj-ul-Uloom an unlawful association under the UAPA. This led to the attachment of the institution and restricted access.

This NCLT action marks a significant enforcement measure by the Union Ministry of Corporate Affairs in Jammu and Kashmir, especially in national security cases. The next hearing is scheduled for July 13.

IndiaJamaat-e-IslamiNational Company Law TribunalSiraj-ul-Uloom Welfare FoundationUAPA