New Delhi, November 19: 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 falsely claiming accreditation and recognition, misleading students and parents into paying fees.
These findings were detailed in the remand application filed before a court following the arrest of Al-Falah group chairman Jawad Ahmed Siddiqui on Tuesday evening.
Siddiqui was arrested under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, after ED conducted search operations earlier the same day at locations linked to the Al-Falah group. The searches were part of an ongoing investigation based on an Enforcement Case Information Report (ECIR) registered on November 14.
According to ED, an analysis of Income Tax Returns from Financial Year (FY) 2014-15 to FY 2024-25 showed substantial revenues reported as voluntary contributions and educational receipts since the establishment of the university.
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, major income was reported as educational revenue, including Rs 24.21 crore (FY 2018-19), Rs 41.97 crore (FY 2019-20), Rs 55.49 crore (FY 2020-21), Rs 55.15 crore (FY 2021-22), Rs 89.28 crore (FY 2022-23), Rs 68.87 crore (FY 2023-24) and Rs 80.10 crore (FY 2024-25).
ED claimed that income generated during years when institutions lacked valid accreditation adds up to Rs 415.10 crore. The agency added that Siddiqui exercised complete control over all entities under the Al-Falah educational group, and only a part of the proceeds of crime has been uncovered so far.
Seeking Siddiqui’s custodial interrogation, ED told the court that custody was necessary to investigate fee structures, donations, fund transfers between entities, and any benami or off-book assets created using illicit funds.
ED also warned that Siddiqui, who still has significant influence over the trust, may attempt to divert funds or alter property ownership, including that of the Dhauj campus, to obstruct the investigation.
The agency further stated that custodial interrogation was required to determine the roles of family members and associates listed as trustees and directors, even though evidence suggests Siddiqui acted as the primary decision-maker.
The ED’s money laundering case is based on two FIRs registered by the Delhi Police Crime Branch on November 13. These FIRs allege that Al-Falah University falsely claimed National Assessment and Accreditation Council (NAAC) accreditation and University Grants Commission (UGC) recognition under Section 12(B), misleading students and stakeholders for wrongful gain.
Al-Falah Charitable Trust, formed on September 8, 1995, lists Jawad Ahmad Siddiqui as one of its founding trustees and the Managing Trustee, the ED said.
Search operations were conducted at 19 locations in Delhi, including the university campus and residences of key individuals from the group.
ED said its investigation shows that large proceeds of crime were generated, with evidence of crores of rupees being diverted to family-owned businesses.
During the searches, ED seized over Rs 48 lakh in cash, several digital devices, and other important documents.
