Founder of Al-Falah University Arrested in Money Laundering Case

New Delhi: The Enforcement Directorate (ED) has arrested Javed Ahmed Siddiqui, the chairman of the Al-Falah Group, in connection with a money laundering investigation. The arrest took place under Section 19 of the Prevention of Money Laundering Act (PMLA) following a series of searches conducted earlier in the day.

Siddiqui has served as the chancellor of Al-Falah University in Faridabad since 2014. The investigation is focused on allegations of fraudulent claims regarding accreditation and financial irregularities involving the group’s educational institutions.

Al-Falah Medical College, part of the Al-Falah Group, has been implicated in one of India’s most significant terrorism investigations in recent years. Authorities suspect that key suspects, including a faculty member named Umar Un Nabi, used the college’s facilities to plan logistics for a bombing incident near the Red Fort in Delhi. Reports indicate that a vehicle linked to the attack was parked on the college grounds for an extended period.

The ED's inquiry originated from two First Information Reports (FIRs) filed by the Delhi Police Crime Branch. These reports assert that Al-Falah University falsely claimed accreditation from the National Assessment and Accreditation Council (NAAC) and misrepresented its eligibility under Section 12(B) of the University Grants Commission (UGC) Act. The UGC has confirmed that the university is recognised solely as a private institution under Section 2(f) and is ineligible for central funding.

A senior official from the ED stated that Siddiqui has been the managing trustee of the Al-Falah Charitable Trust since 1995, controlling the trust and its affiliated educational establishments. Despite the group’s significant expansion since the late 1990s, investigators have raised concerns regarding the legitimacy of its financial growth.

On Tuesday, the ED conducted searches at 19 locations across the National Capital Region (NCR), which included the university and residences of key personnel. The agency reported finding evidence of substantial fund diversion. Officials indicated that substantial amounts of illicit funds had allegedly been funneled into family-owned enterprises, with claims that construction and catering contracts were awarded to companies associated with Siddiqui’s family.

During these operations, the ED seized ₹48 lakh in cash, alongside various digital devices and documents. Investigators also identified several shell companies believed to be part of the money laundering scheme.

According to an ED representative, the evidence gathered pointed to Siddiqui's involvement in fund layering and diversion, which ultimately led to his arrest. Following the arrest, he was presented in court to request custodial remand, and investigations are ongoing.