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ED files charge sheet against Al-Falah University chairman, attaches ₹139 cr assets
Officials said the charge sheet was filed on Friday and includes strong evidence of financial irregularities in the university by Siddiqui and his family
NEW DELHI: The Enforcement Directorate (ED) has filed a charge sheet against Faridabad-based Al-Falah University’s chairman Jawad Ahmed Siddiqui, and the family-run Al-Falah Charitable Trust as part of a money laundering probe linked to the November 10 terror attack near Delhi’s Red Fort, people familiar with the development said.
The agency also attached assets worth ₹139 crore, including a 54-acre parcel of land within the Al-Falah campus, under the Prevention of Money Laundering Act (PMLA).
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Officials said the charge sheet was filed on Friday and includes strong evidence of alleged financial irregularities in the university by Siddiqui and his family members.
As first reported by HT on December 25, ED has found in its probe that firms controlled by the Siddiqui family allegedly received contracts for hostel catering and construction of the university and hospital complex. The agency has also claimed that Al-Falah Charitable Trust acquired land using university funds.
Siddiqui was arrested by the ED on November 18 on money laundering charges following accusations that Al-Falah University had made “fraudulent and misleading claims” about its accreditation to deceive students, parents, and stakeholders for wrongful gain.
At the time, ED told a court that the university and its controlling trust allegedly generated “proceeds of crime” worth at least ₹415.10 crore by “dishonestly” inducing students and parents through false claims of accreditation and recognition.
The case has links to a wider probe into a white-collar terror module, in which over two dozen people, including three doctors, have been arrested by the National Investigation Agency (NIA) and Jammu and Kashmir Police.
The university’s role emerged after Umar-un-Nabi, a doctor at Al-Falah Medical College, carried out a suicide car bombing outside the Red Fort on November 10 last year, killing at least 11 people.
NIA is separately probing the terrorism angle in the blast.
According to ED, it has come across certain foreign filings that describe Siddiqui’s children, his son Afham Ahmed and daughter Afiya Siddiqa, as British nationals, and is currently looking into their citizenship status.
“Al-Falah Charitable Trust, Al-FalahUniversity, Al-Falah School of Medical Sciences and Research Centre, and other related persons and entities have been thoroughly investigated over the last two months. We have found that there is an organised layering and integration of suspected proceeds of crime into educational/charitable structure at the university, fraudulent land acquisition and diversion of charitable funds, undisclosed related-party transactions and cross-border holdings,” an ED officer said.
Investigations have also revealed that multiple related-party fund diversions in significant transactions, including construction work of the medical college/hospital complex at Dhauj, Faridabad, which are being carried out by Karkun Construction and Developers, a partnership firm in which Siddiqui’s two children hold 49% each share while 2% is held by an employee.
“Similarly, hostel catering contracts were awarded to Amla Enterprises LLP, in which his wife Usma Akhtar holds 49%, son holds 49% and the remaining 2% is in the name of an ex-employee.”
A firm - Star Foods - owned by his brother had supplied food items to the university till 2016, a second officer said.
“The firms are effectively run/controlled by Jawad Ahmad Siddiqui and such related-party transactions were not disclosed in returns of income and/or other statutory filings of the trust/associated entities”, said the second officer.
The probe also allegedly revealed that one Tarbia Education Foundation, linked to Siddiqui, acquired land in Delhi’s Madanpur Khadar village for which university funds were diverted.
Regarding overseas links, ED officials said that “investigation has revealed incorporation of Ennoble Education and Training Limited in the United Kingdom (incorporated in May this year) with initial shareholding linked to Jawad’s son and daughter, and subsequent change in shareholding to include a UK-based close associate, whose details are being verified through competent channels”.
Besides, ED has found that there are various violations of regulatory norms (including NMC, UGC/NAAC etc) and indications that Jawad Ahmad Siddiqui has settled his family abroad.
