New Delhi: Enforcement Directorate (ED) on Tuesday arrested Jawad Ahmed Siddiqui, founder of Al Falah University and Chairman of Al Falah group, in connection with a terror financing-linked money laundering case. He was taken into custody under the criminal provisions of the Prevention of Money Laundering Act (PMLA). 

The arrest took place on Tuesday following a detailed investigation and analysis of evidence gathered during a search action conducted at premises related to the Al Falah group in the “ongoing probe in an ECIR recorded by the ED under PMLA in connection with the Al Falah Group.”

According to the ED, it initiated the investigation 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, has 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 FIR that Al-Falah University has falsely claimed UGC recognition under Section 12(B) of the UGC Act, 1956, with an oblique motive to cheat the aspirants, students, parents, guardians, stakeholders and general public to gain wrongfully and cause wrongful loss to them.

“The UGC 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 ED said in a press note.

Al-Falah Charitable Trust was constituted by a public charitable trust deed dated September 8, 1995, with Jawad Ahmad Siddiqui named as one of the first trustees and designated as the Managing Trustee.

All the educational institutions (university and colleges) are ultimately owned and financially consolidated under this trust, which is effectively controlled by Jawad Ahmad 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 agency said.

Searches conducted 

ED conducted search operations at 19 locations in Delhi on Tuesday, including the premises of Al Falah University and residential premises of key persons of the Al Falah group.

The agency's investigation has revealed that large amounts of proceeds of crime have been generated.

“Evidence reveals that crores of rupees have been diverted by the trust to family-owned entities. For example, the construction as well as catering contracts were given by trust/Jawad Ahmad to entities of his wife and children,” it said.

It further added that during the search, “cash of over 48 lakhs, multiple digital devices and documentary evidence were found and seized. Multiple shell companies of the group have been identified. Numerous violations under several other Acts have also been detected.”

“The role of Jawad Ahmad Siddiqui in effectively controlling the trust and its activities has been brought out by multiple pieces of evidence. Exhaustive evidence, including recovery of cash from trustees’ diversion of funds to family concern, layering of funds, etc., clearly establishes the pattern of generation and layering of proceeds of crime,” it said.

After establishing his culpability in the offence, Jawad Ahmed Siddiqui was arrested on Tuesday under Section 19 of the PMLA, 2002, after following due legal procedure.

“He has been produced before the Court for the purpose of seeking ED remand,” it said.

Further investigation is in progress.