Haryana – The Enforcement Directorate has taken decisive action in a major financial fraud investigation, with the Al Falah founder arrested on Tuesday in connection with money laundering charges linked to alleged fraudulent accreditation claims and financial irregularities. Jawad Ahmad Siddiqui, chairman of the Al-Falah group and chancellor of Al-Falah University in Faridabad since 2014, now faces serious legal consequences under the Prevention of Money Laundering Act.
Arrest Under Prevention of Money Laundering Act
The Al Falah founder arrested following comprehensive investigations by the Enforcement Directorate, which examined material seized during search operations conducted earlier in the day. Siddiqui was taken into custody under Section 19 of the Prevention of Money Laundering Act (PMLA), marking a significant development in the ongoing probe into the educational group’s financial operations.
The arrest comes amid heightened scrutiny of Al-Falah University, which has found itself at the center of multiple investigations, including one of India’s largest terror probes in recent years. The timing and circumstances of the arrest have drawn considerable attention from law enforcement agencies and educational regulators alike.
Connection to Red Fort Terror Investigation
The Al-Falah Medical College, sprawling across a 72-acre campus in Faridabad, has emerged as a critical location in the investigation of the Red Fort blast. Police believe prime suspects, including faculty member Umar Un Nabi—described by the National Investigation Agency as the suicide bomber behind the Red Fort blast—utilized a room at the medical college to plan logistics and transport routes for ammonium nitrate intended for multiple blasts across the National Capital Region.
According to police sources, the Hyundai i20 that exploded near Red Fort was parked inside the campus for nearly 20 days, raising serious questions about security protocols and oversight at the institution. While the ED’s money laundering case stems from separate allegations, the terror probe has intensified scrutiny of the institution’s overall operations and management.
Fraudulent Accreditation Claims
The Enforcement Directorate’s investigation originates from two FIRs registered by the Delhi Police Crime Branch. The complaints allege that Al-Falah University falsely claimed accreditation by the National Assessment and Accreditation Council (NAAC) and misrepresented its eligibility under Section 12(B) of the UGC Act to mislead students and their parents.
The University Grants Commission has officially clarified that the university holds recognition only under Section 2(f) as a state private university and has never been eligible for central grants. This misrepresentation forms the foundation of the money laundering charges, as investigators examine how fraudulently obtained funds were handled and distributed.
Complete Control Over Educational Network
A senior ED official revealed that the Al Falah founder arrested after investigations established his complete control over the Al-Falah Charitable Trust, which he has managed as trustee since 1995. Siddiqui exercised comprehensive authority over the trust and its extensive network of educational institutions, giving him significant influence over financial decisions and fund allocation.
“Despite the group’s rapid expansion since the late 1990s, investigators say its financials do not support such growth,” the official stated, highlighting discrepancies between the institution’s growth trajectory and its documented financial resources.
Extensive Search Operations and Evidence Recovery
The Enforcement Directorate conducted searches at 19 locations across the National Capital Region on Tuesday, targeting the university campus and residences of key personnel. During these operations, the Al Falah founder arrested after investigators claimed to uncover evidence of large-scale fund diversion.
Officials assert that proceeds of crime running into crores of rupees were systematically routed to family-owned entities. Construction and catering contracts were allegedly awarded to firms linked to Siddiqui’s wife and children, creating a network of related-party transactions that benefited the family financially.
Financial Evidence and Shell Companies
The investigation yielded substantial material evidence, with the agency seizing ₹48 lakh in cash, numerous digital devices, and critical documents. Investigators identified multiple shell companies believed to form part of an elaborate laundering network designed to obscure the movement and origin of funds.
The ED official explained that evidence of fund layering, systematic diversion of resources, and recovery of unexplained cash established Siddiqui’s culpability in the money laundering scheme where Al Falah founder arrested. Fund layering—a technique used to create distance between illegal funds and their source through multiple transactions—appears to have been a key component of the alleged operation.
Legal Proceedings and Ongoing Investigation
Following the arrest, the Al Falah founder arrested was produced before a court where the Enforcement Directorate sought custodial remand for further questioning. The request for custody indicates investigators believe Siddiqui possesses crucial information about the extent of the financial irregularities and the identities of other individuals potentially involved in the scheme.
“Further investigation is underway,” the ED official confirmed, suggesting that additional arrests or revelations may follow as the probe deepens ahead of Al Falah founder arrested.
Implications for Educational Sector
The case of Al Falah founder arrested raises broader concerns about regulatory oversight in the private education sector. The alleged fraudulent claims about accreditation and UGC eligibility highlight vulnerabilities in the system that allows institutions to potentially mislead students and parents about their credentials and legitimacy.
As the investigation continues, the Al Falah founder arrested represents a significant step toward accountability in what appears to be a complex case of financial fraud, misrepresentation, and potential exploitation of students seeking quality education. The outcome of this case may have far-reaching implications for how private educational institutions are monitored and regulated in India.
