ED arrests Al-Falah founder Jawad Siddiqui in money laundering, terror-financing probe

The Enforcement Directorate (ED) arrested Jawad Ahmed Siddiqui, the founder of Al-Falah University and chairman of the Al-Falah Group, in a money laundering case on Tuesday. The arrest is part of a broader investigation that is also exploring possible links to terror-financing activities.

Siddiqui's arrest comes amid increasing scrutiny of the Faridabad-based university, which investigators have linked to a "white-collar" terror module. This module is suspected to be connected to the November 10 Red Fort blast that resulted in 14 fatalities and several injuries.

Earlier in the day, ED conducted searches in Delhi-NCR against the trustees and promoters of Al Falah University. Multiple teams of the federal probe agency raided at least 25 premises of the Al Falah trust and University establishment since 5:15 am. The agency questioned Siddiqui and searched his residence. The ED's move follows a detailed examination of evidence obtained from searches at the university and other locations associated with the Al-Falah Group.

FIRs on fake accreditation trigger ED inquiry

Sources indicated that the ED's investigation began after the Delhi Police Crime Branch filed two FIRs. The FIRs alleged that Al-Falah University falsely claimed NAAC accreditation and misrepresented its status under Section 12(B) of the UGC Act, potentially misleading students and parents.

The University Grants Commission (UGC) later clarified that the university is only listed under Section 2(f) as a state private university and has never been eligible for grants under Section 12(B).

Trust structure and financial trail

The ED's inquiry also uncovered troubling financial practices. The Al-Falah Charitable Trust, founded in 1995 and led by Siddiqui, oversees the group's educational institutions. Investigators say the rapid growth of the trust and its institutions was not supported by corresponding financial records. 

Searches at the university and residences of key personnel revealed evidence of crores of rupees being diverted as alleged proceeds of crime. Authorities found that funds from the trust were channeled to family-owned entities. Construction and catering contracts were reportedly awarded to firms linked to Siddiqui’s wife and children.

Rs 48 lakh cash haul, shell firms found

During the investigation, the ED seized Rs 48 lakh in cash, along with digital devices and extensive documents. Authorities also identified multiple shell companies associated with the group and uncovered suspected violations of various laws. Investigators have gathered evidence showing a clear pattern of fund diversion, layering, and misuse of trust funds under Siddiqui’s control.

Possible terror-financing angle

In addition to the financial probe, the ED is investigating whether any of the laundered funds were channeled to individuals linked to the November 10 Red Fort attack. The inquiry into possible terror-financing remains ongoing.

Following the discovery of his alleged involvement in generating and layering proceeds of crime, the ED placed Siddiqui under arrest on November 18 in accordance with legal procedures. Further investigations are underway.