Al Falah University probe widens: ED tracks Rs 415 cr, warns chairman may flee to Gulf

The Enforcement Directorate (ED) has told a Delhi court that Al Falah Group chairperson Jawad Ahmed Siddiqui had "incentives to flee India." The probe agency also alleged that the university and its trust generated Rs 415.10 crore in "tainted funds" by fraudulently collecting money from students through false accreditation claims. 

The ED arrested Siddiqui on Tuesday night after a day-long searches at the university and linked premises. He was produced before a court, which sent him to 13 days' custody. The agency said Siddiqui, whose close family members live in the Gulf, exercised "complete control" over the Faridabad-based Al Falah University and its institutions, which are now under investigation for links to the November 10 Red Fort blast.

According to the ED, "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." It alleged that Siddiqui's institutions induced students and parents to pay fees "dishonestly" by misrepresenting accreditation and recognition status under the University Grants Commission (UGC) framework.

The agency said only a fraction of the Rs 415 crore proceeds of crime have been identified so far, warning that Siddiqui could destroy or alter records if not kept in custody. "The entire Al Falah educational ecosystem is controlled by him and only a portion of the proceeds of crime worth Rs 415.10 crore has been identified so far," the ED said.

It said Siddiqui was the founder and managing trustee who was "controlling the mind" of Al Falah charitable trust and exercises de facto influence over Al Falah University and its institutions. The ED alleged Siddiqui's custodial interrogation was necessary to unearth and quantify the full extent of the "proceeds of crime", including those not yet visible in the disclosed income tax return figures and to enable the timely attachment and confiscation under the PMLA. 

The ED also claimed that Siddiqui has "command" over the staff that handles admission registers, fee ledgers, accounts and IT systems of the University and other institutions under the Trust and he 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 Rs 415.10 crore has been identified so far, the ED informed the court. 

Links to 'white-collar' terror probe

The university's alleged financial irregularities came to light during an investigation into a "white-collar" terror module being probed by the National Investigation Agency (NIA) and Jammu and Kashmir Police.

Ten people, including three doctors, have been arrested in the case. One of them, Dr Umar-un-Nabi, a faculty member at Al Falah's hospital, allegedly acted as a suicide bomber in the November 10 blast near Delhi's Red Fort that killed 15 people.

The ED registered its money laundering case on November 14, taking cognisance of two Delhi Police FIRs that accused Al Falah University of forging its NAAC accreditation and falsely claiming UGC recognition under Section 12(B). The UGC later clarified that the university was only listed under Section 2(f) as a state private university and was never eligible for central grants.

The probe agency has alleged that the Al-Falah University falsely claimed that it is a UGC-recognised university and misrepresented its NAAC (National Assessment and Accreditation Council) accreditation status.

The agency said the entire Al Falah group had seen a "meteoric rise" since the 1990s, transforming into a large educational body. "However, the financials of the various entities are at variance with the huge amount of assets/wealth accumulated by the group," it told the court.

(With inputs from PTI)