CNN-News18 has obtained exclusive documents that reveal a direct financial link between the Popular Front of India (PFI) and its political wing, the Social Democratic Party of India (SDPI). The leaked minutes of meetings and handwritten notes show that PFI not only authorised SDPI to raise funds from Gulf nations but also provided financial support for its electoral campaigns and legal expenses.

Documents retrieved from PFI’s Political Action Committee (PAC) and State Executive Committee (SEC) meetings indicate substantial financial aid extended to SDPI. A key record from March 2019 shows that PFI allocated ₹3.75 crore to SDPI’s election fund, with ₹1.75 crore settled through vouchers. Another entry from a July 2017 PAC meeting at Unity House, Kerala, details that ₹8.30 lakh was set aside for the Vengara bypoll, with an additional ₹25 lakh to be raised locally.

Concerns over election spending were raised by Kerala SDPI leader Ajmal Ismail in an audit report, prompting PFI to establish a sub-committee for review. The committee, after examining the expenses, justified the spending and submitted the report for approval to PFI’s National Executive Council (NEC).

The seized documents also reveal that PFI regularly paid legal fees for SDPI leaders facing criminal charges. A "classmate notebook" recovered from Unity House, Kerala, during searches in December 2020 lists various payments, including ₹1.47 lakh sanctioned for an individual named Salim, who has multiple cases against him. Another entry records ₹75,000 allocated for court bonds for Rashid, Sadiq, and Nurudhin, who were accused in a highway blockade case.

Additionally, an entry in the notebook states, “Amount to be sanctioned to ALP SDPI after checking loan account." The mention of "ALP SDPI" refers to the Alappuzha SDPI unit in Kerala, further confirming PFI’s financial involvement in SDPI’s regional activities.

The Enforcement Directorate (ED) has substantiated these findings, confirming that PFI systematically controlled and funded SDPI. The ED’s investigation, initiated under the Prevention of Money Laundering Act (PMLA), 2002, found that PFI raised funds through hawala transactions and donations from domestic and international sources, particularly Gulf nations, to finance SDPI and other activities.

In a recent development, the ED arrested SDPI National President M.K. Faizy from Delhi’s Indira Gandhi International Airport. Faizy was accused of overseeing SDPI’s finances, allegedly sourced from PFI’s undisclosed funds. He had previously ignored multiple ED summonses, resulting in a non-bailable warrant. As part of the ongoing crackdown, the agency has attached assets worth ₹61.72 crore and arrested 26 PFI members so far.

These revelations strengthen the government’s case against PFI and SDPI, both of which have been accused of financial misconduct and illegal activities. The leaked documents expose a deep-rooted financial nexus between the two organisations, raising serious concerns about the use of foreign and unaccounted funds in Indian elections.

With multiple law enforcement agencies intensifying their investigations, the PFI-SDPI financial link is under heightened scrutiny. As more details emerge, the government’s actions against both entities are expected to escalate, further impacting the political landscape.

(This exclusive report is based on documents accessed by CNN-News18.)