A Delhi court on Wednesday sent Al Falah Group chairperson Jawad Ahmed Siddiqui to ED custody for 13 days, with the agency arguing that he had incentives to flee India as close family members live in the Gulf. The Enforcement Directorate (ED) arrested Siddiqui on Tuesday night after day day-long search at locations linked to the group, associated individuals and the Faridabad-based Al Falah University. The university is at the center of the investigation into the November 10 Delhi blast case that killed fifteen people and injured several others.
The federal agency told the court that Siddiqui received at least four hundred and fifteen crore rupees in funds generated dishonestly from students of educational institutions run by his trust. He was produced before Additional Sessions Judge Sheetal Chaudhary Pradhan at her residence close to midnight, and the proceedings continued until one in the morning.
The judge said, “After carefully considering the submission made, I am of the considered view that all the compliances under Section 19 of the PMLA have been done.”
“Considering the gravity of the offence and that the investigation is at a nascent stage, I deem it appropriate that the accused is granted ED custody remand for a period of thirteen days till December 1," the judge ordered.
Al Falah University's terror links
The ED had sought 14 days' custody. The university’s role emerged during the probe into a white collar terror module in which 10 people, including 3 doctors, have been arrested by the National Investigation Agency (NIA) and the Jammu and Kashmir Police. One of the doctors at the university cum hospital, Dr Umar un Nabi, is alleged to have acted as a suicide bomber while driving an explosive-laden car on November 10 that detonated outside the Red Fort, killing 15 people.
The ED registered its case on November 14 under the anti-money laundering law after taking cognisance of two Delhi Police FIRs against the Al Falah Group.
Rs 415 crore funds unearthed
The agency told the court that the university and its controlling trust, under Siddiqui’s direction, generated proceeds of crime of at least Rs 415.10 crore by dishonestly inducing students and parents to part with money through false claims of accreditation and recognition.
Siddiqui’s lawyer argued in court that he had been falsely implicated and that the two Delhi Police FIRs were false and fabricated.
The ED said Siddiqui’s arrest was necessary because there was a risk of his absconding and of non-cooperation.
“The accused has significant financial resources and influence and has a history of serious economic offences. His close family members are also settled in Gulf countries and he has incentives to flee India.
“Given the gravity of the present allegations with proceeds of crime quantified in hundreds of crores and the potential consequences under PMLA, there is a reasonable apprehension that if not arrested he may abscond or remain unavailable for effective interrogation, relocate assets and himself beyond the jurisdiction, and continue to delay or obstruct the investigation,” the agency told the court.
How Jawad Siddiqui controlled Al Falah's funds
It said Siddiqui was the founder and managing trustee who was controlling the mind of Al Falah Charitable Trust and exercised de facto influence over Al Falah University and its institutions. The ED claimed his custodial interrogation was required to uncover and quantify the full extent of the proceeds of crime, including those not reflected in income tax return filings, and to enable timely attachment and confiscation under the PMLA.
The agency added that Siddiqui had command over staff handling admission registers, fee ledgers, accounts and IT systems of the university and its other institutions and could destroy or alter records. The entire Al Falah educational ecosystem is controlled by Siddiqui and only a portion of the proceeds of crime worth four hundred and fifteen crore and ten lakh rupees has been identified so far, the ED told the court.
The agency has alleged that Al Falah University falsely claimed UGC recognition and misrepresented its NAAC accreditation status. NAAC is an autonomous UGC funded body that evaluates and accredits higher education institutions. The ED said the wider Al Falah Group has seen a meteoric rise since the 1990s, turning into a large educational body, but the financials of its various entities do not match the extensive assets and wealth accumulated by the group.
With inputs from PTI
