Zakir Naik - who has claimed that "every Muslim should be a terrorist" - was banned from coming to Britain last June by Theresa May in one of her first major acts as Home Secretary.
But eight months on, the 45-year-old cleric is still a key figure in a company that holds an Ofcom-approved licence for Peace TV.
Now, the broadcasting watchdog has confirmed it is investigating the satellite channel, broadcast in English and Urdu, after receiving a complaint from a viewer over its extremist messages.
Programmes on Peace TV have included praise for "mujahideen" fighting British troops in Iraq, labelled Jews as an "enemy of Islam" and made claims about the 9/11 terror attacks being an "inside job".
Conservative MP Patrick Mercer, former shadow minister for security, said: "The Home Secretary dealt with Naik extremely effectively.
I think she will be furious to discover he still has a licence to spread his poison on satellite television. Ofcom should revoke it immediately."
Naik was banned from entering the country after it was judged that his presence was "not conducive to the public good".
The decision, later upheld by the High Court, was based on a sermon the Mumbai-based preacher had posted on the internet during which he said "every Muslim should be a terrorist".
Naik has also been filmed saying: "There are many Jews who are good to Muslims, but as a whole the Koran tells us, as a whole, they will be our staunchest enemy."
During the court case, lawyers for the Home Office also suggested that Naik's sermons broadcast in India acted as inspiration for the terrorists behind the Mumbai attacks in 2008.
In his appeal against Ms May's decision, held last November, the cleric's lawyers revealed Naik was director and chairman of Universal Broadcasting Corporation Ltd, a company registered in Britain.
UBCL owns a subsidiary firm, Lords Production Ltd, which has held the broadcasting licence for Peace TV since 2007.
In a further twist, the High Court papers name Naik as the chairman of a charity, the Islamic Research Foundation International, which appears to provide funding for Peace TV.
Latest accounts lodged with the Charity Commission show IRF received £1.5 million in donations in 2009; of which £1.25 million was used to "support Peace TV". Under Naik, who is founder and president of the channel, it has broadcast a range of anti-Semitic and anti-Western programmes.
Hannah Stuart, of the Centre of Social Cohesion, said: "Zakir Naik has been excluded from the UK - to allow him to continue broadcasting here makes a mockery of that decision."
An Ofcom spokesman said: "We are in the middle of an investigation about Peace TV. Ofcom will not tolerate extremism on British television, and transgressors will be dealt with."
A Peace TV spokesman said: "We have received no complaints in the last two years. As far as we are aware there is no Ofcom investigation.
We are currently appealing Theresa May's decision in the Court of Appeal."
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But where did that bit of hate speech come from? What kind of seething bigot even comes up with stuff like that?
"Strongest among men in enmity to the believers wilt thou find the Jews..." -- Qur'an 5:82
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