Red Fort blast: Al-Falah group chairman sent to 13-day ED custody in terror funding probe

The Enforcement Directorate (ED) on Tuesday night arrested chairman of the Al-Falah group Jawad Ahmad Siddiqui in an alleged money-laundering case related to the Al Falah Charitable Trust.

He was sent to 13 days’ ED custody by a city court till December 1. The order was passed at 1 am on Wednesday by Additional Sessions Judge Sheetal Chaudhary Pradhan.

Siddiqui was arrested on Tuesday under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. He was produced before the court later in the night for the purpose of seeking ED remand.

According to officials, the arrest followed detailed investigation and analysis of evidences gathered during search operations carried out at premises related to the Al Falah group in the ongoing probe in an ECIR recorded by the ED under the PMLA in connection with the Al Falah group.

The agency had initiated its investigation on two FIRs registered by the Crime Branch, Delhi Police, alleging that Al Falah University, Faridabad, had made fraudulent claims of NAAC accreditation to deceive students, parents, and other stakeholders for wrongful gain. The FIR also stated that the university has falsely claimed UGC recognition under Section 12(B) of the UGC Act, 1956, with intent to cheat aspirants, students, parents, guardians, stakeholders and the general public.

The UGC later clarified that Al Falah University is included only under Section 2(f) as a State Private University, has never applied for inclusion under Section 12(B), and is not eligible for grants under that provision.

The Al Falah Charitable Trust was set up on September 8, 1995, with Siddiqui named as one of the first trustees and designated as the managing trustee. All educational institutions (university and colleges) under the group are ultimately owned and financially consolidated under this trust, which is effectively controlled by him. The group has seen a meteoric rise since the 1990s metamorphosing into a large educational body. However, the rise is not backed by adequate financial strength.

The ED conducted searches at 25 locations in Delhi on Tuesday, including the university premises and residences of key persons associated with the group. Investigators revealed that large amounts of proceeds of crime have been generated and that crores of rupees have been diverted by the trust to family-owned entities. For example, construction and catering contracts were allegedly given by trust/Siddiqui to entities of his wife and children.

Officials said over Rs 48 lakh in cash, multiple digital devices and documentary evidence were seized. Multiple shell companies linked to the group have also been identified, along with alleged violations under several other Acts.

According to the ED, Siddiqui’s role in controlling the trust and its activities has been brought out by multiple pieces of evidence recovered during the search operations.

The agency maintained that exhaustive evidence, including recovery of cash from trustees’ diversion of funds to family concerns, and layering of funds, established the generation of proceeds of crime.

After establishing his culpability in the offence, the ED arrested Siddiqui following due legal procedure.