Al Falah university founder Javed Ahmed Siddiqui arrested by ED in money laundering case

Jawad Ahmed Siddiqui is the founder and managing trustee of Al-Falah University, which is facing probe in “white collar” terror module case.

New Delhi: The Enforcement Directorate (ED) on Tuesday arrested Jawad Ahmad Siddiqui, chairman of the Al-Falah group, in connection with its money laundering case linked to alleged fraudulent claims of accreditation and financial irregularities by the group’s flagship institutions.

Al Falah University, located at Dhauj road, where professor Muzammil Shakeel was arrested for allegedly possessing explosives, arms and bomb-making equipment, in Faridabad. ( Parveen Kumar/Hindustan Times)

Siddiqui, who has also been chancellor of Al-Falah University in Faridabad since 2014, was taken into custody under Section 19 of the Prevention of Money Laundering Act (PMLA) after investigators examined material seized during search operations conducted earlier in the day.

The group’s Al-Falah Medical College, spread across a 72-acre campus in Faridabad, has been at the centre of one of India’s largest terror probes in years. Police believe the prime suspects - including faculty member Umar Un Nabi, who has been described by the National Investigation Agency as the suicide bomber behind the Red Fort blast- used a room at the medical college to plot logistics and transport routes for ammonium nitrate intended for multiple blasts across the NCR. The Hyundai i20 that exploded near Red Fort was parked inside the campus for nearly 20 days, police said.

The ED probe, however, stems from two FIRs registered by the Delhi Police Crime Branch, alleging that Al-Falah University, Faridabad, falsely claimed to be accredited by the National Assessment and Accreditation Council (NAAC) and misrepresented its eligibility under Section 12(B) of the UGC Act to mislead students and parents. The UGC has clarified that the university is recognised only under Section 2(f) as a state private university and has never been eligible for central grants.

A senior ED official said Siddiqui, who has been managing trustee of the Al-Falah Charitable Trust since 1995, exercised complete control over the trust and its network of educational institutions.

“Despite the group’s rapid expansion since the late 1990s, investigators say its financials do not support such growth,” he said.

During searches at 19 locations in NCR on Tuesday, including the university and the residences of key personnel, the ED claimed to have uncovered evidence of large-scale fund diversion.

Officials said proceeds of crime running into crores of rupees were routed to family-owned entities, with construction and catering contracts allegedly awarded to firms linked to Siddiqui’s wife and children. The agency seized ₹48 lakh in cash, digital devices, documents and identified multiple shell companies believed to be part of the laundering network.

The ED official said evidence of fund layering, diversion and recovery of cash established Siddiqui’s culpability, leading to his arrest.

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