The Enforcement Directorate (ED) on Tuesday arrested Al Falah University founder Jawad Ahmed Siddiqui on charges of money laundering amid probe into to Delhi blast on November 10, key suspects and conspirators of which have been linked to the varsity situated in Faridabad, near the national capital.
The agency is also probing whether funds linked to Siddiqui were also channelled into supporting the terror activities of doctors employed at the Al Falah University.
Charges against Al Falah Group chief
In an official statement, the ED said Siddiqui, chairman of the Al Falah Group, was arrested under section 19 of the Prevention of Money Laundering Act 2002. The action was taken on the basis of key information and evidence recovered during searches conducted at premises linked to the Al Falah Group.
The ED initiated its investigation on the basis of two FIRs registered by the Delhi Police Crime Branch. The FIRs alleged that Al Falah University in Faridabad, had made false claims regarding its accreditation status.
The allegations included the following: Al Falah University falsely claimed to have NAAC accreditation, it also falsely stated that it was recognised under section 12 B of the University Grants Commission Act. These claims were allegedly made to mislead students, parents and the general public for financial gain.
The UGC has clarified that Al Falah University is listed only as a state private university under section 2 f. It has never applied for recognition under section 12 B.
How Al Falah Trust operates
The Al Falah Charitable Trust was established on September 8 1995. Siddiqui has been a trustee since the first day and is effectively the person who controls the entire group. The university and all associated colleges function under this trust.
The trust and the group expanded rapidly from the 1990s onwards, but this growth does not match their real or normal financial capacity.
What ED probe into Al Falah Group found
The ED conducted searches at nineteen locations in Delhi, including Al Falah University and the residences of key persons associated with the trust. During the raids, the ED recovered more than Rs 30 lakh in cash, several digital devices and other important documents which served as evidence related to multiple shell companies.
The ED investigation revealed that funds belonging to the trust were diverted to family-owned companies. Construction and catering contracts were allegedly awarded to companies owned by Siddiqui’s wife and children. The agency also found evidence of layering of funds, suspicious transactions and several violations of financial regulations.
According to the ED, Siddiqui exercised effective control over the trust and its financial decisions. The evidence indicates that he concealed the proceeds of crime and moved the money through multiple layers. Based on the findings, the ED placed him under arrest after completing the required legal procedures.
