ED probe uncovers Rs 415-cr ‘scam’ at Al Falah University

Al Falah group chairman Jawad Ahmad Siddiqui has been sent to 13-day ED remand till December 1. The group is accused of generating over Rs 415 crore “dishonestly” from students studying in the institutions run by it.

The probe into the alleged violations under the Prevention of Money Laundering Act (PMLA) has revealed that the bank accounts of all educational institutions under the entity used a single permanent account number (PAN) and the income tax returns (ITRs) were filed in the name of the Al Falah Charitable Trust, confirming a unified financial control.

According to the remand application filed by the agency before Additional Sessions Judge Sheetal Chaudhary Pradhan in the Saket district court in the national capital, the ITRs since 2014-15 were a revelation as these showed that in 2014-15 and 2015-16, Rs 30.89 crore and Rs 29.48 crore, respectively, were shown as donations.

However, from 2016-17 onwards, the university began showing its income as “receipts from main object” or in other words through academic activity.

Moreover, a spike in the income was seen from 2018-19 onwards. The income of the institution went up from Rs 24.21 crore in 2018-19 to Rs 80.01 crore in 2024-25. This came to Rs 415 crore during the said period.

Siddiqui, founder and chairman of the Al Falah group, was arrested by the ED in the terror financing-linked money laundering investigation on the evening of November 18. The Saket court remanded him to ED custody for 13 days till December 1 in an order passed during the wee hours of November 19.

Apart from the above-mentioned allegations, the remand note alleged that Al Falah University collected full fees from students even while operating without accreditation. This falls under the ambit of fraud and forgery. The cases filed against the university alleged that students were admitted using false accreditation. Fake documents were prepared and “illegal income” was generated by way of charges.

During the PMLA probe, evidence was found that showed that the university defrauded the public and students’ fee was used for personal and private purposes, the ED alleged.

Siddiqui’s arrest took place following a detailed investigation and analysis of evidence gathered during searches conducted on the premises related to the Al Falah group in the ongoing probe into an ECIR recorded by the ED under the PMLA in connection with the group.

The agency had initiated investigations against the Al Falah group on the basis of two FIRs registered by the crime branch, Delhi Police, based on the allegations that Al Falah University, Faridabad, had made fraudulent and misleading claims of NAAC accreditation with an intention to deceive students, parents and stakeholders for wrongful gain.

It has been further mentioned in the FIR that Al Falah University falsely claimed UGC recognition under Section 12(B) of the UGC Act, 1956, with the oblique motive to cheat aspirants, students, parents, guardians, stakeholders and the general public.

The UGC clarified that Al Falah University was included only under Section 2(f) as a state private university, had never applied for inclusion under Section 12(B) and was not eligible for grants under that provision.

The Al Falah Charitable Trust was constituted by a public charitable trust deed dated September 8, 1995, with Siddiqui named as one of the first trustees and designated as the managing trustee.

Huge donations raise eyebrows

According to the ED’s remand application, in 2014-15 and 2015-16, Rs 30.89 crore and Rs 29.48 crore, respectively, was shown as donations by the university

From 2016-17 onwards, the university began showing its income as “receipts from main object” or in other words from academic activity

The income of the institution went up from Rs 24.21 crore in 2018-19 to Rs 80.01 crore in 2024-25. The total income during this period was Rs 415 crore

All educational institutions (university and colleges) are ultimately owned and financially consolidated under this trust, which is effectively controlled by Siddiqui.

The entire Al Falah group has seen a meteoric rise since the 1990s metamorphosing into a large educational body. However, the rise is not backed by adequate financials, the ED probe alleged.

The ED had conducted search operations at 25 locations in Delhi on November 18, including the premises of Al Falah University and the residential premises of key persons of the Al Falah group.

The probe further revealed that large amounts of proceeds of crime had been generated. Evidence revealed that crores of rupees had been diverted by the trust to family-owned entities.

For example, the construction as well as catering contracts were given by the trust or Siddiqui allegedly to entities of his wife and children. During searches, over Rs 48 lakh, multiple digital devices and documentary evidence were found and seized.

Multiple shell companies of the group have been identified and numerous violations under several other Acts have also been detected.