NEW DELHI: The Enforcement Directorate (ED) has alleged that Al-Falah University and its controlling trust generated proceeds of crime worth at least Rs 415.10 crore by fraudulently inducing students and parents to pay fees based on false accreditation and recognition claims.
The investigative agency made its claims in the remand application filed before a court after the arrest of Al-Falah group chairman Jawad Ahmed Siddiqui on late Tuesday evening.
The agency had arrested Siddiqui under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, following a detailed investigation and analysis of evidence gathered during a search action conducted earlier on Tuesday at premises related to the Al Falah group. The search was in connection with an ongoing probe in an Enforcement Case Information Report (ECIR) recorded by the ED on November 14 under PMLA in connection with the Al Falah Group.
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The ED said an analysis of Income Tax Returns from Financial Year (FY) 2014-15 to FY 2024-25 — the period after the university’s establishment — revealed substantial revenues shown as voluntary contributions and educational receipts.
It said the trust declared Rs 30.89 crore in FY 2014-15 and Rs 29.48 crore in FY 2015-16 as “voluntary contributions”. From FY 2016-17 onwards, large incomes were reported as “receipts from main object” or “educational revenue”, including ₹24.21 crore (FY 2018-19), ₹41.97 crore (FY 2019-20), ₹55.49 crore (FY 2020-21), ₹55.15 crore (FY 2021-22), ₹89.28 crore (FY 2022-23), ₹68.87 crore (FY 2023-24) and ₹80.10 crore (FY 2024-25).
The agency said the aggregate income from years when institutions lacked valid accreditation stands at Rs 415.10 crore. The ED told the court that Siddiqui exercised complete control over the Al-Falah educational ecosystem, and only a portion of the proceeds of crime has been identified so far.
Seeking Siddiqui’s custodial interrogation, the ED told the court that the custody of the accused was essential to uncover fee structures, donations, inter-entity fund flows, and any benami or off-book assets created using illicit funds.
The agency also warned of a “serious risk of dissipation” of tainted assets, stating that Siddiqui continued to wield de facto influence over the trust and could potentially divert funds, alter ownership structures or encumber properties, including the Dhauj campus, to obstruct the investigation.
The ED added that custodial interrogation was required to determine the roles of family members and associates who appeared as trustees and directors across the university’s network, but where evidence pointed to Siddiqui being the “controlling mind”.
Citing two First Information Reports (FIRs) of the Crime Branch of Delhi Police based on which ED filed money laundering case against Al-Falah group, the agency said that there were reasonable grounds to believe Siddiqui committed the offence of money laundering under Section 3 of the PMLA by engaging in activities connected with proceeds of crime generated through cheating, forgery and misrepresentation of NAAC and UGC recognition.
The Crime Branch of Delhi Police had registered the two FIRs on November 13 based on the allegations that Faridabad-based Al-Falah University has made fraudulent and misleading claims of National Assessment Accreditation Council (NAAC) accreditation with an intention to deceive students, parents, and stakeholders for wrongful gain.
It has been further mentioned in FIR that Al-Falah University has falsely claimed University Grants Commission (UGC) recognition under Section 12(B) of the UGC Act, 1956, with an oblique motive to cheat the aspirants, students, parents, guardians, stakeholders and general public to gain wrongfully and cause wrongful loss to them.
Al-Falah Charitable Trust was constituted by a public charitable trust deed dated September 8, 1995, with Jawad Ahmad Siddiqui named as one of the first trustees and designated as the Managing Trustee, the ED said. The ED has conducted search operations at 19 locations in Delhi on Tuesday, including the premises of Al Falah University and the residential premises of key persons of the group.
The ED said its investigation has revealed that “large amounts of proceeds of crime have been generated. Evidence reveals that crores of rupees have been diverted by the trust to family-owned entities.” During the search, ED said, cash of over Rs 48 lakh, multiple digital devices and documentary evidence were found and seized. (ANI)
