How A Routine Timber Bust Exposed A Massive Terror-Funding Network

What began as a routine case of illegal timber smuggling in the tribal heartland of Madhya Pradesh has now exploded into a multi-agency national security investigation, raising chilling questions. 

Were forests plundered to finance terror? And did systemic silence allow a Rs 200-crore shadow economy to thrive for years?

At the centre of this widening probe is Alirajpur district, one of Madhya Pradesh's most tribal-dominated regions, now under the scanner of the Directorate of Enforcement, National Investigation Agency, state ATS units, and forest departments across multiple states.

THE Rs 200-CRORE KHAIR WOOD EMPIRE

Investigative agencies say the racket was allegedly orchestrated by Mohan Tahir, a resident of Godhra, Gujarat, accused of illegally felling and smuggling Khair (Kaith) wood worth nearly Rs 200 crore over the last three years. Market estimates suggest the value could touch Rs 700 crore, given Khair's extensive use in catechu (katha) production.

According to officials, Tahir operated a clandestine timber depot on private land in Malwai village, Alirajpur, under the banner of Shalimar Enterprises. The warehouse was allegedly managed by Arif (Alif) Ali Makrani, who has been questioned by the investigators.

The trail first surfaced in June 2024, when a truck carrying illegally sourced Khair wood was intercepted in Gujarat. During questioning, the driver revealed he was transporting timber to a depot in Alirajpur. That single disclosure triggered a joint operation by the Mandvi Forest Division, Surat, leading to the sealing of the Alirajpur depot.

Forest officials later seized over 2,000 metric tonnes (1,600+ cubic metres) of Khair wood allegedly disguised as a legal timber operation. 

"In July 2024, we registered a case and seized a truck meant for Alirajpur's Shalimar Enterprises. After a joint operation, around 1,600+ cubic metres of timber over 2,000 tonnes were found. This nexus was active in Gujarat, Maharashtra, Madhya Pradesh, Karnataka, Telangana, and timber was sent up to Haryana and Delhi. It ran for nearly two years," HR Jadhav, ACF, Mandvi (Surat) said. 

FROM TIMBER TO TERROR: THE ALARMING TURN

The investigation took a far more disturbing turn when central agencies linked the Alirajpur depot to radical networks. A senior officer of the Anti-Terrorism Squad told NDTV, "The Alirajpur depot and the Khair wood stock are linked to the ISIS Padgha module. Money generated from this illegal trade was being used for terrorist funding. Some links between those running the depot and Sakib Nachan have surfaced."

Just 10 days ago, on December 11, 2025, the Directorate of Enforcement conducted searches at 40 locations across Maharashtra, Delhi, West Bengal, Jharkhand, Gujarat, Rajasthan, and Madhya Pradesh, including the Padgha-Borivali belt near Mumbai. The raids, carried out under the Prevention of Money Laundering Act (PMLA), 2002, uncovered a terror-funding network allegedly linked to a highly radicalised ISIS-inspired module.

During the operation, the ED seized Rs 9.70 crore in cash, Gold jewellery and bullion worth Rs 6.6 crore, froze 25 bank accounts, recovered hawala documents, digital devices, radical literature, and records of immovable properties suspected to be proceeds of crime. 

ED officials confirmed that intelligence inputs pointed towards illegal revenue-generating activities, including hawala operations, clandestine cattle smuggling, and illegal Khair wood trade, with proceeds allegedly diverted to fund extremist activities.

According to officials, two accused Sachin Fakle and Khalil Usman Mulla identified during ED raids are also named in the Alirajpur Khair wood case, strengthening the terror-funding angle. 

The money-laundering investigation stems from FIRs and charge sheets filed by the National Investigation Agency under IPC, UAPA, and the Explosive Substances Act, relating to recruitment, training, procurement of weapons, and funding of terror modules.

During a court-mandated de-sealing operation, a startling disclosure was made by Gujarat's Special Public Prosecutor. "Depot owner Mohan Tahir is absconding. Immigration records show he left India for Hajj and has not returned till November 2025. The money earned from illegal Khair wood trade was used for anti-national activities," said Dr Mahendra Singh Kachhawa, Special Public Prosecutor, Gujarat.

He further revealed that hawala transactions linked to the depot manager have already been flagged and shared with the ED, with amounts running into Rs 4 crore per individual.

Investigators are now examining regulatory loopholes. Khair was earlier a protected species in Madhya Pradesh, but was removed from the protected list post-2021, easing transit and storage norms. 

Officials are asking, why was Khair cut in Gujarat dumped in Alirajpur? How did a depot known for Sal and Teak store only Khair? Were forest officials complicit or deliberately silent? 

"If forest officials are found involved, they will face action," Dr Kachhawa said.

As multiple agencies, Forest Departments of several states, Police, ATS, ED, and NIA close in, the Alirajpur Khair wood case is no longer just about illegal logging. It is now a chilling question of whether forests were plundered to finance terror, and whether systemic lapses or silence allowed a Rs 200-crore shadow economy to thrive for years in the heart of tribal Madhya Pradesh.