New Delhi, Nov 18 (NationPress) The Enforcement Directorate (ED) apprehended Jawad Ahmed Siddiqui, the founder of Al Falah University and Chairman of the Al Falah group, on Tuesday due to his involvement in a money laundering case linked to terror financing. His arrest was made under the criminal stipulations of the Prevention of Money Laundering Act (PMLA).

The arrest followed a comprehensive investigation and scrutiny of evidence collected during a search operation executed at locations associated with the Al Falah group, as part of an ongoing inquiry related to an ECIR filed by the ED under the PMLA.

The ED stated that the investigation against the Al Falah group was initiated based on two FIRs lodged by the Crime Branch of the Delhi Police. Allegations pointed out that Al-Falah University in Faridabad had made fraudulent and misleading claims regarding its NAAC accreditation to deceive students, parents, and stakeholders for wrongful gains.

Furthermore, the FIR indicated that Al-Falah University falsely asserted its UGC recognition under Section 12(B) of the UGC Act, 1956, aiming to cheat potential students, parents, guardians, and the general public to gain unlawfully and inflict wrongful losses.

The UGC clarified that Al-Falah University is only recognized under Section 2(f) as a State Private University, has never sought inclusion under Section 12(B), and is ineligible for grants under that provision,” stated the ED in a press release.

The Al-Falah Charitable Trust was established through a public charitable trust deed dated September 8, 1995, with Jawad Ahmad Siddiqui listed as one of the initial trustees and appointed as the Managing Trustee.

All educational institutions (universities and colleges) are ultimately owned and financially consolidated under this trust, which is effectively managed by Jawad Ahmad Siddiqui. The entire Al-Falah group has experienced remarkable growth since the 1990s, evolving into a substantial educational organization.

“However, this growth is not supported by adequate financial resources,” noted the agency.

The ED executed search operations at 19 sites in Delhi on Tuesday, targeting the premises of Al Falah University and the residences of key individuals associated with the Al Falah group.

The agency's investigation has uncovered that significant sums of illicit proceeds have been generated.

“Evidence indicates that crores of rupees have been redirected by the trust to family-owned entities. For instance, construction and catering contracts were awarded by the trust/Jawad Ahmad to businesses owned by his wife and children,” it stated.

It was further reported that during the searches, “cash exceeding 48 lakhs, various digital devices, and documentary evidence were seized. Multiple shell companies linked to the group have been identified. Numerous infractions under various other Acts have also been found.”

“The role of Jawad Ahmad Siddiqui in effectively managing the trust and its operations has been substantiated by various pieces of evidence. Extensive evidence, including cash recovery from trustees, diversion of funds to family interests, and layering of funds, clearly reveals the pattern of generating and layering illicit proceeds,” it added.

Following the establishment of his involvement in the offense, Jawad Ahmed Siddiqui was arrested on Tuesday under Section 19 of the PMLA, 2002, after adhering to due legal procedures.

“He has been presented before the Court to seek ED remand,” it noted.

Further investigations are ongoing.