ED arrests Al Falah group chairman after daylong raids

The ED on Tuesday evening arrested Al Falah group chairman Jawad Ahmed Siddiqui in an alleged money laundering case linked to the Al Falah Charitable Trust. He was arrested under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, and produced before the PMLA court for remand.

The arrest followed a detailed investigation and analysis of evidence gathered during searches on premises associated with the Al Falah group, conducted as part of an ECIR-based probe under PMLA.

The case stems from two FIRs registered by the Delhi Police Crime Branch alleging that Al Falah University, Faridabad, fraudulently claimed NAAC accreditation and falsely projected UGC recognition under Section 12(B) of the UGC Act, 1956, to mislead students, parents and stakeholders for wrongful gain. The UGC has clarified that the university is recognised 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, constituted on September 8, 1995, lists Siddiqui as one of its first trustees and the managing trustee. All educational institutions of the group are owned and financially consolidated under the trust, which is effectively controlled by him.

The ED said the group has witnessed a rapid expansion since the 1990s, growing into a large educational network, but without commensurate financials. Searches at 25 locations in Delhi, including Al Falah University and residences of key persons, revealed that substantial proceeds of crime had been generated. Investigators found evidence of diversion of funds worth crores to family-owned entities, with contracts for construction and catering allegedly routed to firms linked to Siddiqui’s wife and children. Cash amounting to over Rs 48 lakh, digital devices and documentary records were seized.

Multiple shell companies tied to the group have also been identified, along with violations under various other laws.

According to the agency, evidence indicates that Siddiqui exercised effective control over the trust and its financial activities, with records showing diversion of funds, layering and other transactions consistent with laundering of proceeds of crime. After establishing his role, the agency placed him under arrest following due legal procedure.