ED arrests chair of Al-Falah Group after raids

The money laundering probe stems from two FIRs filed by the Delhi Police Crime Branch on a complaint from the University Grants Commission (UGC).

The Enforcement Directorate (ED) on Tuesday arrested Jawad Ahmed Siddiqui, chairman of the Al-Falah group, after officials raided more than 25 locations across Delhi and Faridabad linked to the group’s university, trust and associated companies.

The Al Falah University in Faridabad. (HT Photo)

The arrest, made under Section 19 of the Prevention of Money Laundering Act (PMLA), followed a daylong operation in which investigators recovered cash, documents and digital records allegedly tied to large-scale financial irregularities.

Officials said the coordinated searches – carried out jointly by ED and Income Tax authorities from around 5.15am – covered Al-Falah University, the residences of trustees, administrative offices and entities connected to the Al-Falah Charitable Trust. These raids formed the basis for Siddiqui’s arrest later in the evening, officials aware of the matter said, adding that investigators examined seized material and concluded that evidence of fund diversion and layering “established his culpability”.

The money laundering probe stems from two FIRs filed by the Delhi Police Crime Branch on a complaint from the University Grants Commission (UGC). The FIRs allege that Al-Falah University misrepresented itself as NAAC-accredited and falsely claimed eligibility under Section 12(B) of the UGC Act. UGC has clarified that the institution is recognised only under Section 2(f) as a state private university and has never qualified for central grants. The Association of Indian Universities (AIU) has already revoked the university’s membership.

Investigators said Al-Falah University, where Red Fort bomber Umar un-Nabi and several accused in the “white-collar” Faridabad terror module had worked, is under scrutiny for its finances as well as alleged misuse of its infrastructure. Entities tied to the Al-Falah Trust and the university’s promoters are also being examined for possible fund diversion and other offences, they said.

A senior ED official said Siddiqui, named managing trustee when the Al-Falah Trust was set up in 1995 and a key figure in the group’s expansion since the late 1990s, exercised “complete control” over the trust and its educational network. “Despite the rapid expansion of the group, its financials do not support such growth,” the official said, adding that family-linked firms appeared central to several questionable transactions.

During the searches, ED seized ₹48 lakh in cash, digital devices, financial records and documents pointing to the alleged diversion of proceeds of crime running into crores of rupees. Officials said construction, catering and service contracts were routinely awarded to companies tied to Siddiqui’s wife and children, while several entities receiving payments from the trust showed indicators of being shell companies.

A second officer involved in the raids said nine linked companies — all registered at the same address — are a focal point of scrutiny. “These firms show classic red flags of shell entities: no physical operations, negligible utility use, common email IDs and phone numbers, and directors overlapping across supposedly separate companies,” he said. Salary payments were “minimal and unsupported”, with no HR or payroll records found at the premises. Statutory filings such as EPFO and ESIC contributions were also absent.

“The incorporation patterns of these firms, including synchronous registration dates and overlapping contact details, suggested deliberate structuring to obscure actual ownership,” one of the officer cited above said.

ED’s action on Tuesday also revived scrutiny of Siddiqui’s older business ventures. A senior investigating officer said Siddiqui, has interests across education, software, financial services and energy. He was also named in a 2000 Delhi Police case for allegedly duping investors through purported halal investment schemes.

“He was produced before a court to seek custodial remand. Further investigation is underway,” he added.