ED arrests Al-Falah University founder
What's the story
The Enforcement Directorate (ED) has arrested Jawad Ahmed Siddiqui, founder of Al-Falah University and chairman of the Al-Falah Group. The arrest was made under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. The move comes after a detailed examination of evidence collected during searches at premises associated with the Al-Falah Group as part of an ECIR-based investigation.
Misconduct claims
Allegations of financial misconduct against Al-Falah University
According to India Today, the ED probe was launched after two FIRs were filed by the Delhi Police Crime Branch. The FIRs alleged that Al-Falah University made false claims of NAAC accreditation to deceive students and stakeholders for illegal gains. They also claimed that the university falsely stated recognition under Section 12(B) of the UGC Act, despite being recognized only under Section 2(f) as a state private university.
Trust investigation
Al-Falah Charitable Trust's rapid growth under scrutiny
The Al-Falah Charitable Trust, founded in 1995 with Siddiqui as a founding and managing trustee, owns all educational institutions under the Al-Falah Group, sources told India Today. The trust has expanded rapidly since the 1990s, but investigators say this expansion was not backed by corresponding financial records. Searches at the university and residences of key personnel revealed alleged proceeds of crime were generated and diverted.
Financial irregularities
Evidence of fund diversion and misuse of trust funds
Investigators found evidence that funds from the trust were diverted to family-owned entities. Construction and catering contracts were allegedly awarded to firms linked to Siddiqui's wife and children. The ED also seized ₹48 lakh in cash, digital devices, and extensive documentation during its probe. Multiple shell companies connected with the group have also been identified. The ED is also investigating if any part of the laundered money was used to fund individuals involved in the Red Fort blast.
Ongoing investigation
ED probes potential link to Red Fort blast
The university was thrust into the spotlight after some of its doctors were arrested over alleged links to the Delhi blast. Approximately 2,900 kg of bomb-making material was discovered in rooms rented by Dr. Muzammil, a doctor associated with the Al-Falah School of Medical Sciences and Research Centre. Another doctor, Dr. Shaheen, was arrested after weapons were found in her car. A car exploded near the Red Fort hours after their arrest. The driver, Dr. Umar, also worked at Al-Falah.