Al Falah group chairman sent to 13-day ED custody in ₹415 crore alleged fraud case

New Delhi [India], November 19 (ANI): A Delhi court has remanded Al Falah Group Chairman, Jawad Ahmed Siddiqui to 13 days of Enforcement Directorate (ED) custody, till December 1, noting in a detailed remand order that there exist reasonable grounds to believe he committed the offence of money laundering linked to large-scale fraud, forged accreditation claims, and diversion of funds from the Al-Falah University ecosystem.
The order passed by Additional Sessions Judge Sheetal Chaudhary Pradhan at her camp office shortly after midnight records that Siddiqui was arrested late on November 18 following compliance with Section 19 of the Prevention of Money Laundering Act (PMLA) and that ED sought custodial interrogation based on substantial evidence of deception, misrepresentation, and movement of suspected proceeds of crime.
After examining ED's submissions, the court held that the investigation is at a "nascent stage," the alleged financial offences are "grave," and custodial interrogation is essential to trace further proceeds of crime, prevent dissipation of tainted assets, and avoid influence over witnesses or destruction of electronic and financial records.
The Enforcement Directorate arrested Siddiqui under Section 19 of PMLA on November 18, 2025, in connection with alleged money laundering involving the Al-Falah Charitable Trust, which controls the University and its educational institutions.
The ED action follows two FIRs registered by the Delhi Police Crime Branch on November 13, 2025. The FIRs allege that expired NAAC accreditation grades were falsely advertised by Al-Falah University and affiliated institutions.
The University fabricated claims of UGC recognition under Section 12(B) of the UGC Act--despite never applying for it and being ineligible for grants. These claims were allegedly used to mislead students and parents into believing the institution held valid approvals and credibility, thereby attracting admissions and fees through fraudulent inducement.
The court recorded that the ED's financial analysis showed Al-Falah institutions generated about ₹415.10 crore between FY 2018-19 and 2024-25 through student fees collected while the University was allegedly misrepresenting its NAAC accreditation and UGC status. The court noted that this money appeared to have been obtained through cheating and forgery, making it proceeds of crime under PMLA.
Searches at 19 locations on November 18, 2025 led to the recovery of ₹48 lakh in cash, digital devices, financial records and evidence of shell entities. The ED told the court that construction and catering contracts were diverted to firms linked to Siddiqui's family, and that senior officials confirmed he approved all major financial decisions. The agency also pointed to fund layering and related entities used to conceal the money trail.
Granting 13 days of custody, the court said ED interrogation was needed to trace more proceeds of crime, prevent dissipation of assets and avoid tampering with digital and financial records. It also cited the risk of influencing witnesses and possible flight risk, given Siddiqui's resources and family connections abroad. Siddiqui's counsel claimed the FIRs were false and that he was ready to cooperate, but the court held that custody was justified due to the seriousness of the allegations.
The ED has said the proceeds of crime may exceed the ₹415 crore identified so far and is examining fund flows, shell entities, properties and the roles of family members and office-bearers. (ANI)