The Enforcement Directorate (ED) has taken decisive action against Al Falah University. On Friday, the agency announced the attachment of immovable properties valued at Rs 139.97 crore belonging to the Faridabad-based institution. The ED also filed a chargesheet against the university's founder-chairman, Jawad Ahmed Siddiqui, before a Delhi court.
Assets Seized and Legal Action Initiated
Authorities attached a 54-acre campus along with all buildings on the premises. This move follows a detailed investigation into financial irregularities at the university. The ED filed a prosecution complaint under the Prevention of Money Laundering Act (PMLA) against Siddiqui and other individuals.
Background of the Case
Siddiqui faced arrest on November 18 last year on money laundering charges. Security agencies placed the university under scrutiny after the November 10 Red Fort area blast. Three doctors working at Al Falah University emerged as suspects in a terror module probe. The central government subsequently ordered a forensic audit of all university records.
Key Findings of the Investigation
Investigators uncovered a complex web of financial transactions. Siddiqui allegedly layered proceeds of crime through family-controlled entities. Institutional funds were routed through firms like Amla Enterprises LLP, Karkun Construction & Developers, and Diyala Construction and Developers Pvt. Ltd.
The ED discovered outward foreign remittances exceeding Rs three crore favoring Siddiqui's wife. Approximately Rs one crore was remitted to benefit his son. Charitable and educational institutions apparently served as instruments for personal, family, and commercial gain.
Scale of Financial Irregularities
Proceeds of crime have been quantified at Rs 493.24 crore so far. The ED initiated its investigation based on two FIRs registered by the Delhi Police Crime Branch. The Al Falah Charitable Trust generated these proceeds from scheduled offences linked to the FIRs.
Misrepresentation and Regulatory Violations
The Trust displayed false projections of NAAC 'A' grade accreditation after its expiry. It also falsely projected UGC Section 12(B) status, deceiving medical education regulators including the National Medical Commission and DMER, Haryana. Over Rs 110 crore was routed to family-controlled firms.
Siddiqui's Dominant Control
Investigations revealed Siddiqui exercised dominant control over Al-Falah Charitable Trust, Al-Falah University, and related entities. As Managing Trustee and Chancellor, he maintained complete administrative, financial, and operational control. Other office-bearers functioned as nominal or proxy persons.
Specific Violations Uncovered
One key violation involved misrepresentation of NAAC status. The university was projected as recognized under Section 12(B) of the UGC Act, 1956, despite only having Section 2(f) status. The establishment and functioning of the medical college violated NMC norms. Approvals and certifications were allegedly obtained through misrepresentation and suppression of material facts.
Trust Structure and Control
Al Falah Charitable Trust was constituted by a public charitable trust deed dated September 8, 1995. Siddiqui served as one of the first trustees and was designated as the Managing Trustee. All educational institutions, including the university and colleges, are ultimately owned and financially consolidated under this trust, which Siddiqui effectively controls.
