A Delhi court on Saturday dismissed the bail plea of Al-Falah University chairman Jawad Ahmad Siddiqui in a money laundering case. Additional Sessions Judge Sheetal Chaudhary Pradhan observed that the allegations against him are grave and serious in nature, and no grounds for relief are made out at this stage.
Background of the Case
The case stems from an Enforcement Directorate probe into the Al-Falah Group based on FIRs registered by the Delhi Police Crime Branch. The FIRs allege that the university falsely projected NAAC accreditation and UGC recognition to mislead students and parents for unlawful gains.
ED's Arguments Against Bail
Opposing the bail plea under Section 45 of the Prevention of Money Laundering Act (PMLA), the ED, represented by counsels Simon Benjamin, Zoheb Hussein, and Kanika Meena, argued that there were reasons to believe Siddiqui's prima facie involvement in money laundering, supported by tangible and credible evidence. The agency alleged that fraudulent claims of NAAC accreditation continued to be displayed on the university's website despite non-renewal. Additionally, forged faculty records were used to secure regulatory approvals, including an Essentiality Certificate from the Haryana government and permissions from the National Medical Commission.
The ED also pointed to other criminal proceedings against Siddiqui, including alleged forgery of sale deeds linked to Tarbia Education Foundation and serious charges under the Unlawful Activities (Prevention) Act (UAPA) relating to the preparation of explosive materials. The agency submitted that Siddiqui is also an accused in the Red Fort blast case, reflecting a continuing pattern of criminal conduct.
Defence's Counterarguments
The defence termed the prosecution a gross abuse of PMLA provisions, contending that legitimate educational activities and fee collections of a charitable trust were being wrongly projected as proceeds of crime.
Court's Observations
The court noted that Siddiqui has been specifically named in multiple predicate offence FIRs under the Bharatiya Nyaya Sanhita, 2023, and took into account submissions regarding pending UAPA proceedings in which he is allegedly a main accused. Observing his central role, the court recorded that Siddiqui exercised control over the group's day-to-day affairs, including financial decisions and fund transfers, often through directions issued via WhatsApp groups.
From the material placed on record, the court held that it is prima facie made out that the accused generated proceeds of crime and laundered the same, adding that he was involved in fraudulent, manipulative, and unfair trade practices by diverting funds from Al-Falah University. The alleged proceeds of crime amounted to Rs 493.24 crore.
Fund Diversion and Overseas Investments
Judge Pradhan further observed that funds from Al-Falah University were routed through Amla Enterprises LLP, Karkun Constructions & Developers, and Diyala Construction and Developers Pvt Ltd — entities allegedly controlled by Siddiqui — and invested abroad. Thus, as managing trustee and chancellor, he abused his fiduciary duties by using charitable and educational institutions as instruments for personal, family, and commercial benefit, in violation of statutory obligations.
The court also noted allegations that Siddiqui siphoned funds from trust accounts into personal accounts and used entities under his control as conduits for diversion and layering of funds, including overseas transfers. Holding that the pattern was consistent with financial fraud and money laundering, the court dismissed the bail plea.
