The UK government has imposed landmark counter-terrorism sanctions on a British Sikh man with alleged ties to pro-Khalistan extremist groups, marking the first use of the country’s Domestic Counter-Terrorism Regime.
Gurpreet Singh Rehal, who until recently worked in a consultancy role with National League club Morecambe FC and its owners Panjab Warriors, has been hit with an asset freeze and banned from serving as a company director.
In a statement HM Treasury alleges Rehal was involved in supporting Babbar Khalsa and Babbar Akali Lehar, both linked to violent extremist activity in India.
The Treasury said it assessed Rehal to be “promoting and encouraging, carrying out recruitment activities for, and providing financial services to” the groups, including involvement in purchasing weapons and military materiel. A related organisation, Babbar Akali Lehar, has also been sanctioned.
All assets owned or controlled by Rehal or Babbar Akali Lehar in the UK are now frozen and cannot be accessed or used without a Treasury licence. UK individuals and entities are prohibited from dealing with their funds or providing financial services to them. Rehal is additionally barred from acting as a director or participating in company management.
The enforcement action follows close cooperation between HM Treasury and policing agencies. Economic Secretary to the Treasury Lucy Rigby KC MP said the measures underscored Britain’s resolve to prevent extremist networks from exploiting the country’s financial system.
“We will not stand by while terrorists exploit Britain’s financial system,” she said.
“This landmark action shows we are prepared to use every tool at our disposal to choke off funding for terrorism. The UK stands firmly with peaceful communities against those who promote violence and hatred.”
It is reported that Rehal had been a visible figure during Panjab Warriors’ acquisition of Morecambe FC earlier this year, despite not being listed as a shareholder or director. Following the sanctions, Morecambe FC and Panjab Warriors issued a joint statement distancing themselves from him.
“An individual who previously held a consultancy role in marketing and communications with our organisations is no longer affiliated with either Morecambe FC or Panjab Warriors.”
The role “carried no strategic, financial or operational authority”, they added.
“Following recent serious concerns that have come to light, we took immediate and decisive action, and his association with both organisations has been fully removed.”
The club and ownership group said they would now strengthen due diligence processes for key personnel.
As per BBC, the Independent Football Regulator has also stepped in, saying it is working with relevant authorities to assess the matter “urgently”. The regulator this week brought forward the introduction of a new owners’ and directors’ test to prevent unsuitable individuals from entering English football.
The Treasury has reminded the public that breaches of the sanctions may carry severe penalties, including up to seven years’ imprisonment or civil fines of up to £1 million. The restrictions also apply to entities owned by Rehal, including Saving Punjab CIC, Whitehawk Consultations Ltd and an unincorporated association, Loha Designs.
Babbar Khalsa, also known as Babbar Khalsa International, is a proscribed terrorist organisation in the UK. HM Treasury considers Babbar Akali Lehar to be an associated group involved in similar activities.
According to The Guardian, Rehal was photographed earlier this week meeting National League chief executive Phil Alexander on behalf of Morecambe, shortly before the sanctions were announced. A LinkedIn post from last week also showed him receiving an award in Parliament from the All-Party Parliamentary Group for British Sikhs.
From 4 December 2025, UK law prohibits dealing with the funds or economic resources of Rehal or Babbar Akali Lehar, providing services to them, or allowing Rehal to hold any company directorship.
Government officials say the action signals a new phase in Britain’s efforts to disrupt extremist financing networks.
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