Both madrasas however deny the charges
Two Islamic seminaries in Jammu and Kashmir's Kishtwar district were sealed and taken over by the administration for alleged illegal financial transactions, officials said.
Madrasa Taleem ul Quran and Madrasa Asraful Aloom had over 100 students enrolled. All these children come from poor families who get free education, food and accommodation in the seminaries.
Both the seminaries are allegedly linked to Maulana Ali Mia Nadwi Educational Charitable Trust in Jammu. The trust is facing allegations of Foreign Contribution Regulation Act (FCRA) violations.
"It's actually a case of FCRA violations. Both these madrasas are linked to a trust which is accused of violations. All that is part of detailed investigation," said Devansh Yadav, Kishtwar District Magistrate.
He said the students will be given a choice to enrol in government run schools or continue with religious education.
"There will be two options. First they will be allowed to seek education somewhere else or we install a government appointed teacher who will look after day to day administration of madrasa and take over the financial part of it," said Mr Yadav.
There are hundreds of madrasas across Jammu and Kashmir where thousands of children mainly from poor families are getting religious education and other facilities.
Madrasas are running on public donation and this is for the first time when a madrasa in Jammu and Kashmir has come under the scanner of illegal financial transactions.
Management of both the Madrasas, however deny that they have any link with the Trust facing charges of FCRA violations.
"We appeal authorities to listen to us. We are no way linked to any Trust. We have never heard about such Trust or taken any money from it," said a Madrasa manager.
He said they received an order from the deputy commissioner that our madrasa is being run by a trust and madrasa buildings were sealed and taken over by administration.
"It's local people who give donations to run the madrasa. We don't even know where this trust is and who is running it," he said.
The madrasa management said that government action will adversely impact the education of poor children enrolled in the seminaries.