UK freezes assets of Gurpreet Singh Rehal linked to Babbar Khalsa, pro-Khalistan terrorism in India

The UK has imposed sanctions targeting the funding of the pro-Khalistan terrorist group Babbar Khalsa, marking the first use of domestic counter-terrorism measures against this organization. The move underscores growing UK-India security cooperation and comes amid renewed concern over pro-Khalistan activity in the UK.

Gurpreet Singh Rehal, associated with the acquisition of Morecambe FC via Panjab Warriors, has been sanctioned by HM Treasury. He faces accusations of recruiting members for Babbar Khalsa, providing financial support to the terrorist organization, disseminating violent propaganda against India, and acquiring weapons and military equipment for operations in India. His linked organizations - Saving Punjab CIC, Whitehawk Consultations Ltd, and Loha Designs are also subject to asset freezes. Violations can lead to up to seven years’ imprisonment or fines exceeding £1 million. The measures aim to disrupt terrorist financing networks within the UK and safeguard communities from extremist influence.

In response, Morecambe FC and Panjab Warriors stated that Rehal is “no longer affiliated” with the club. They clarified that his previous consultancy role did not involve ownership, financial control, or decision-making, and pledged to strengthen governance and compliance processes.

An asset freeze has also been imposed on Babbar Akali Lehar for promoting and supporting Babbar Khalsa. According to the UK Treasury, both Rehal and Babbar Akali Lehar are involved in recruitment, financial support, weapons procurement, and promoting extremist ideology. All funds and economic resources in the UK owned, held, or controlled by Rehal, his linked organizations, or Babbar Akali Lehar are now frozen. Rehal is also barred from acting as a director or participating in the management of any company.

Economic Secretary Lucy Rigby KC MP said, “We will not stand by while terrorists exploit Britain’s financial system. This landmark action demonstrates our readiness to use every tool available to cut off funding for terrorism, wherever it occurs and whoever is responsible. The UK stands firmly with peaceful communities against those who promote violence and hatred.”

The sanctions are authorized under the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019, allowing the Treasury to restrict individuals and entities suspected of terrorism. Babbar Khalsa is officially recognized as a proscribed terrorist organization in the UK.

The sanctions follow a backdrop of pro-Khalistan protests in the UK. In March 2025, protesters breached security during a visit by India’s External Affairs Minister, waving Khalistan flags and chanting slogans.

Meanwhile, Canada has acknowledged that pro-Khalistan extremist groups, including Babbar Khalsa International and the International Sikh Youth Federation, have received funding from within its territory. Unlike the UK, Canada has not publicly imposed asset freezes or sanctions against these groups.