The Enforcement Directorate (ED) on Tuesday said it has arrested Al Falah Group chairman Jawad Ahmed Siddiqui in a money laundering case. Siddiqui has been arrested under Section 19 of the 2002 Prevention of Money Laundering Act (PMLA).
They were arrested following a detailed investigation and analysis of evidence collected during searches conducted on Tuesday at premises belonging to the Al Falah Group. This was part of the Enforcement Case Information Report (ECIR) filed by ED under PMLA in relation to Al Falah Group.
The ED initiated investigation against Al Falah Group on the basis of two FIRs registered by the Crime Branch of Delhi Police alleging that Faridabad-based Al-Falah University has made fraudulent and misleading claims of National Assessment Accreditation Council (NAAC) accreditation with the intention of deceiving students, parents and stakeholders for ill-gotten gains.
The FIR further states that Al-Falah University has made false allegations.
Claimed recognition from the University Grants Commission (UGC) under Section 12(B) of the UGC Act, 1956, with the aim of obtaining unfair advantage and causing harm to the candidates, students, guardians, wards, stakeholders and general public.
The UGC clarified that Al-Falah University is incorporated as a state private university only under Section 2(f), has never applied for incorporation under Section 12(b), and is not eligible for grants under that provision.
The ED said that Al-Falah Charitable Trust was formed by a public charitable trust. In the trust deed dated September 8, 1995, Jawad Ahmed Siddiqui was named as one of the first trustees and as the managing trustee.
The agency said, “All educational institutions (universities and colleges) are ultimately owned and financially consolidated by this trust, whose effective control rests with Jawad Ahmed Siddiqui. The entire Al-Falah Group has grown rapidly since the 1990s, and has developed into a large educational body. However, this growth is not supported by adequate financial resources.”
The ED on Tuesday conducted search operations at 19 locations in Delhi, including the Al Falah University campus and residential complexes of key individuals of the Al Falah Group.
The ED said its investigation revealed “huge proceeds of crime have been generated. Evidence shows that the trust has transferred crores of rupees to family-owned entities.”
“For example, the construction and catering contracts were awarded to the trust and the entities of Jawad Ahmed, his wife and children,” it said.
ED said that during the search, more than Rs 48 lakh in cash, several digital devices and documentary evidence were found and seized.
“Multiple shell companies of the group have been identified. Multiple violations under various other acts have also been detected,” the agency said in a statement.
The ED said numerous evidences have revealed Siddiqui’s role in effectively controlling the trust and its activities. He further said, “The extensive evidence including diversion of funds to family functions by trustees, recovery of cash, stratification of funds etc. clearly establishes the pattern of generation and stratification of proceeds of crime.”
After his conviction in the crime, Siddiqui was arrested under Section 19 of PMLA, 2002 as per due legal process. He has been produced in the court to get ED remand.
