New Delhi: A Delhi court on Wednesday sent Jawad Ahmed Siddiqui, founder of Al-Falah University and Chairman of the Al-Falah Group, to 13-day Enforcement Directorate (ED) custody in connection with a terror-financing–linked money laundering case.
Siddiqui was arrested on Tuesday as part of the agency’s ongoing investigation into alleged large-scale financial irregularities at the university.
The court said, “The accused, namely Jawad Ahmad Siddiqui, is sent to ED custody till December 1.”
The agency, in its plea before the court, said the investigation into alleged fake recognition and misleading claims made by the university has revealed that the institution not only admitted students under false pretences for several years but also collected large sums of money through these practices.
ED officials stated that an analysis of Income Tax Returns showed the university reporting income worth several crores from the financial years 2014–15 and 2024–25.
Of particular concern to investigators were financial disclosures for FY 2014–15 and 2015–16, during which the university reported Rs 30.89 crore and Rs 29.48 crore, respectively, as “voluntary contributions”.
After FY 2016–17, however, the university began categorising its income directly as revenue generated from its primary educational operations. The ED claims this shift indicates a deliberate attempt to mask earlier irregularities.
Further financial scrutiny revealed significant revenues in subsequent years, including Rs 24.21 crore in FY 2018–19 and Rs 80.01 crore in FY 2024–25.
In total, the ED alleged that approximately Rs 415.10 crore was obtained through what it describes as “fake accreditation” and false claims of statutory recognition.
The agency has accused the university of betraying the trust and legitimate expectations of students by misrepresenting its National Assessment and Accreditation Council (NAAC) status and falsely claiming undergraduate recognition under Section 12(B).
According to the ED, these misrepresentations “irreparably harmed the lives and career prospects of countless students” who relied on the institution’s claims in good faith.
The agency added that students invest their most productive years – and their families’ financial resources – based on the credibility of an institution, and false recognition results in diminished value of degrees, loss of eligibility for higher education and government jobs, financial setbacks, and emotional distress.
Explaining the need for custodial interrogation, the ED had stated in its remand application that Siddiqui’s arrest was necessary “to unearth further proceeds of crime, reveal crucial evidence, and identify other individuals involved”.
The agency further argued that there remains a possibility the accused may attempt to flee, influence witnesses, or tamper with evidence if not kept in custody.
The ED had sought 14 days of custody, saying that the court must consider the scale of the alleged proceeds of crime, the number of individuals who need to be confronted with the accused, and the sensitivity of the case.
The agency also emphasised that multiple family members and close associates appear as trustees, directors, or office bearers across Al-Falah University and related entities.
However, evidence collected so far suggests that Siddiqui exercised control over all major decisions, including those related to the university’s allegedly fraudulent accreditation claims, fee collection processes, and deployment of funds into assets and properties.
The ED said Siddiqui’s custodial interrogation is essential to map the “entire laundering network” and establish accountability for all individuals involved.
(IANS)
