Canada stands at a crossroads as a new report, released on December 3, 2025, warns that the country faces a pivotal moment in its handling of Khalistani extremism and Punjabi-Canadian gang violence. According to analyses published by IANS and NDTV, the two phenomena, long treated as separate issues, are now showing increasingly intertwined financial and operational links—raising urgent questions about how authorities should respond.
With nearly 800,000 Sikhs calling Canada home, the country boasts one of the largest Sikh populations outside India. The overwhelming majority are law-abiding citizens who contribute greatly to the nation’s economy, particularly in trucking, construction, farming, and small business. Yet, as author and filmmaker Vikram Zutshi wrote for NDTV, “a small, violent fringe within the Punjabi-Canadian community has, over the past two decades, become deeply entangled with transnational organised crime.”
The report details how profits from trafficking cocaine, methamphetamine, and fentanyl are fueling not only the acquisition of weapons and luxury vehicles but also bankrolling pro-Khalistan rallies, diaspora-based referendums, and legal defense funds for extremists. Zutshi’s analysis, cited in both IANS and NDTV, points to mounting evidence that these criminal proceeds are being diverted to support Khalistan-linked separatist activities abroad—a claim echoed by Indian diplomats and some Canadian law enforcement officials.
Since 2007, British Columbia alone has witnessed more than 200 gang-related homicides, many linked to rival Punjabi-Canadian gangs battling for control of the lucrative cross-border drug trade. Law-enforcement sources in both Canada and India, as highlighted in the report, note that a significant share of cocaine and fentanyl flowing into Western Canada is handled through networks controlled by certain Punjabi-Canadian organized crime groups.
“The profits from cocaine, methamphetamine and fentanyl trafficking are not only buying guns and luxury cars; mounting evidence suggests they are also bankrolling pro-Khalistan rallies, referendums and legal defence funds for extremists. This toxic nexus is no secret to Canadian police,” Zutshi wrote for NDTV. The report further states, “the more disturbing allegation—raised by Indian diplomats and echoed in some Canadian police circles—is that part of this criminal revenue is diverted to finance Khalistan separatist activities in the diaspora.”
Despite the serious nature of these allegations, the report is careful to emphasize that most Canadian Sikhs reject both violence and separatism. Prominent community leaders, such as former British Columbia premier Ujjal Dosanjh and the World Sikh Organisation of Canada, have consistently condemned the misuse of gurdwaras for political extremism and called for stronger measures to prevent gang recruitment among Sikh youth. The World Sikh Organisation of Canada, in particular, has been vocal about the need to protect Sikh places of worship from being exploited for political agitation.
“For the vast majority of Canadian Sikhs who simply want to work, raise their families and pray in peace, dismantling this criminal-extremist nexus is not just a law-enforcement priority—it is the only way to remove the stain that a tiny minority has placed on an entire community,” the report noted, as cited by IANS.
Yet, the persistence of the problem is attributed in part to political hesitancy. The report argues that political leaders in key electoral districts such as Brampton and Surrey—areas with significant Sikh populations—have been reluctant to confront the issue directly. According to the analysis, this reluctance is partly due to the electoral significance of these communities, with parties wary of alienating voters. This political calculus, the report suggests, has hampered efforts to address the growing nexus between organized crime and extremist activity.
As a way forward, the report recommends several key measures. First, it calls for strengthened border security to disrupt the flow of illicit drugs and weapons fueling both gang violence and extremist activities. Second, it urges expanded financial-intelligence cooperation with trusted international partners, allowing authorities to better track and interdict the laundering of drug money through political or charitable fronts. Third, the report advocates for a zero-tolerance approach to the laundering of criminal profits, whether through political donations, community organizations, or religious institutions.
“Enhanced border security, financial intelligence cooperation with trusted partners, and a zero-tolerance approach to laundering of drug money through political or charitable fronts would mark meaningful first steps,” the NDTV analysis concluded.
Law-enforcement agencies have long recognized the role of Punjabi-Canadian gangs in the cross-border drug trade, but the report’s findings underscore the urgency of addressing the overlap with extremist networks. This convergence, described as a “criminal-extremist nexus,” poses complex challenges for both policing and community relations. For many Sikh Canadians, dismantling this nexus is essential not only for public safety but also for preserving the reputation and cohesion of their community.
Community leaders have repeatedly called on authorities to do more. Former premier Ujjal Dosanjh and the World Sikh Organisation of Canada have both condemned the exploitation of gurdwaras and demanded stronger action to prevent gang recruitment among Sikh youth. Their stance reflects the prevailing sentiment among Canadian Sikhs: a desire for peace, security, and the opportunity to thrive without being tainted by the actions of a violent minority.
The report’s release comes at a time of heightened scrutiny of Canada’s approach to both organized crime and extremism. Recent years have seen a series of high-profile incidents and investigations that have brought the issue into sharper focus, prompting calls for a more coordinated and resolute response from policymakers. For many observers, the question is whether Canada will seize this moment to implement meaningful reforms—or continue to treat the symptoms rather than the underlying causes.
While the report acknowledges the complexity of disentangling organized crime from political extremism, it insists that failure to act will only deepen the problem. The stakes are high: not only in terms of public safety, but also in the broader context of social harmony and Canada’s international reputation. As the report makes clear, “dismantling the criminal-extremist nexus is not just a law-enforcement priority—it is the only way to remove the stain that a tiny minority has placed on an entire community.”
For now, the challenge remains: will Canadian leaders confront the uncomfortable realities outlined in the report, or will political caution continue to stand in the way? The answer, it seems, will shape the future not just of Canada’s Sikh community, but of the country as a whole.