Saturday, March 29, 2025
Updated: December 06, 2025 | 12:25 AM
The United Kingdom has imposed sanctions on a British Sikh businessman and an associated organisation over allegations of involvement in Khalistan-linked terrorism in India. In a landmark move, the UK government has, for the first time, used its domestic counter-terrorism sanctions regime to disrupt the financing of the pro-Khalistan terrorist organisation Babbar Khalsa.
According to officials, this marks the first-ever use of Britain’s internal counter-terrorism powers specifically to target funding channels linked to pro-Khalistan extremist activities. The decision signals a significant shift in the UK’s approach toward tackling terrorist financing connected to overseas militant groups operating against India.
The UK Treasury announced on Thursday that Gurpreet Singh Rehal, a British Sikh businessman associated with Punjab Warriors Sports Investment Firm, has been placed under sanctions. The measures include:
Freezing of assets
Possible disqualification from holding company directorships
Severe restrictions on financial activities
British authorities stated that Rehal is suspected of having links with terrorist organisations operating in India.
In addition, the UK government also imposed an asset freeze on the “Babbar Akali Movement”, citing its role in promoting and supporting Babbar Khalsa, a banned terrorist organisation responsible for multiple acts of violence.
UK Treasury Minister Lucy Rigby took a firm stance on the issue, making it clear that Britain will not allow its financial system to be exploited by terrorist networks.
“We will not stand by when terrorists abuse the UK financial system,” Rigby said.
“This historic action demonstrates that we are prepared to use every tool at our disposal to stop the financing of terrorism—wherever it occurs and whoever is responsible.”
The move is being seen as a major development in UK–India counter-terror cooperation, particularly at a time when New Delhi has repeatedly raised concerns about Khalistan-linked extremist networks operating from foreign soil. Indian authorities have long argued that overseas funding and propaganda play a key role in sustaining separatist violence.
By targeting financial flows and organisational structures linked to Babbar Khalsa, the UK has sent a strong signal that terror financing tied to anti-India extremism will not be tolerated, even when activities originate outside the subcontinent.
British officials stressed that the action is not community-focused but security-focused, aimed solely at individuals and groups allegedly involved in terrorist activities. The sanctions underline the UK’s commitment to international counter-terrorism norms and preventing its financial institutions from being misused for violent extremist causes.
The development is likely to be closely watched in diplomatic, security, and Sikh diaspora circles, as well as by intelligence agencies in both the UK and India.
