Al-Falah 'enriched itself' at students' cost; generated ₹415 crore: ED
What's the story
The Enforcement Directorate (ED) has accused Haryana-based Al-Falah University of making ₹415 crore by misleading students with false accreditation and recognition claims. The allegations were made in a Delhi court, where the ED sought a 13-day custody remand for Jawad Ahmed Siddiqui, the university's chairman and founder. The court granted the request, noting the gravity of the offense of money laundering. Siddiqui was arrested on Tuesday evening after ED raided 25 locations related to the Al-Falah group in Delhi-NCR.
Misrepresentation claims
ED alleges university misrepresented accreditation status
In court, the ED alleged that Al-Falah University and its controlling trust, under Siddiqui's direction, generated proceeds of crime by inducing students and parents to pay money based on false accreditation and recognition claims. The agency said the university misrepresented its National Assessment and Accreditation Council (NAAC) accreditation status and falsely claimed University Grants Commission (UGC) recognition under Section 12(B).
Student impact
ED highlights impact on students' lives and careers
The ED stressed that the university's actions have irreparably harmed students' lives and career prospects. Special Public Prosecutor Simon Benjamin argued before Additional Sessions Judge Sheetal Chaudhary Pradhan of Saket Court that students invest their valuable years and families' finances based on an institution's credibility. Benjamin argued that when such recognition is false, it diminishes the value of degrees obtained by students, affecting their eligibility for higher education, government jobs, research opportunities, and professional advancement.
Fund diversion
ED claims funds diverted for personal use
The ED also alleged that the ₹415 crore earned by Al-Falah Charitable Trust from fees and related educational receipts was used for personal and private gain. "Incriminating evidence has been found which indicate the diversion of funds (duped from people) and fees of students....Various persons have admitted that matters with regard to financial decisions were taken by the arrestee/accused," it said. The ED's investigation also includes nine shell companies registered at the same address as the Al-Falah group.
Ongoing investigation
Blast suspects linked to Al-Falah
The university was thrust into the spotlight after three of its doctors were identified as suspects in the Red Fort blast, which killed 14 people. Approximately 2,900 kg of bomb-making material was discovered in rooms rented by Dr. Muzammil. 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.