Mumbai-based Zakir Naik is said to be in Saudi Arabia.
Controversial Islamist Preacher Zakir Naik's NGO 'Islamic Research Foundation' has been banned for five years. The government has asked the law enforcing Agencies to maintain a strict surveillance on the activities of all establishments of the organisation, sources said.
The non-profit was earlier placed under the "Prior permission category", which stopped it from receiving foreign funds without getting nod from the Central government.
Today's decision was taken by the cabinet committee on security after Mr Naik was found to deliver provocative speeches.
Police have already been filed criminal cases against Zakir Naik for allegedly inciting young men -- the action came after Bangladesh raised the issue with India following the terror attack on Dhaka's Holey Artisan Cafe last July. Bangladesh had accused him of making speeches that could have incited some of the terrorists.
During investigations, it was also found that his foundation was accepting dubious funding which is used to make Peace TV - an arm of the IRF - to air provocative programmes.
But the non-profit's registration under the Foreign Contribution Regulations Act was renewed inadvertently in September, which led to the suspension of a Joint Secretary and four other officials in the Home Ministry.
Mr Naik, who is said to be in Saudi Arabia, has refused to return to India this year.
The Islamic orator is banned in the UK and Canada for his hate speech against other religions. He is among 16 banned Islamic scholars in Malaysia.