ED alleges educational trusts linked to the university generated hundreds of crores through illegal means; the defence questions ED’s assertion
NEW DELHI — A Delhi court has sent Al-Falah University chairman and Tarbiya Education Foundation director Jawad Ahmad Siddiqui to three days’ police custody in connection with a money laundering case being investigated under the Prevention of Money Laundering Act (PMLA).
The order was passed by Saket Court on Saturday after the Enforcement Directorate (ED) sought custody for further questioning in the case linked to alleged financial irregularities involving Al-Falah Trust and associated educational institutions.
Siddiqui was arrested on 24 March in connection with the investigation. Earlier, on 2 May, the court had rejected his regular bail application after hearing arguments from both the defence and the ED.
According to the ED, Al-Falah Trust allegedly generated proceeds of crime amounting to around Rs 493.24 crore through educational institutions operating under the trust.
The agency alleged that the money was collected through admission-related receipts from students and later routed through several companies allegedly controlled by Siddiqui and his family members.
The ED further claimed that approvals and permissions connected to the institutions were obtained by misleading regulatory authorities, including the Haryana government and the National Medical Commission.
Investigators alleged that the accused secured an Essentiality Certificate and other permissions through false representations.
During the bail hearing earlier this month, the prosecution argued that proceeds of crime linked to Al-Falah University, the trust and associated colleges were transferred through entities including Amla Enterprises LLP, Karkun Constructions and Developers, and Diyala Construction and Developers Private Limited.
The court order noted that these firms were allegedly operated in the names of Siddiqui’s wife, children and trusted employees, while actual control remained with him.
According to the ED, money was later sent abroad and invested in businesses as well as movable and immovable properties outside India.
Additional Sessions Judge Sheetal Chaudhary Pradhan, while rejecting the bail plea, observed that the accused had allegedly misused his position as managing trustee and chancellor.
The court said, “He used charitable and educational institutions for personal, family and business benefit, which amounts to a violation of legal obligations.”
The judge also observed that the alleged proceeds of crime were linked to educational receipts generated by institutions functioning under Al-Falah Charitable Trust, including its medical college.
The ED told the court that the institutions falsely claimed recognition under Section 12(B) of the University Grants Commission framework and also projected accreditation claims linked to NAAC.
Based on these allegations, the agency argued that income generated over the years without a valid accreditation formed part of the proceeds of crime.
Lawyers representing Siddiqui, however, opposed the ED’s claims and argued that the allegations were being contested before the court.
People associated with the institution said the university and trust have provided education to thousands of students, especially from weaker and minority backgrounds, over the years.
A former student of the institution said, “The university has helped many poor students continue higher education. The investigation should be fair and facts should come out through the legal process.”
Another person associated with the trust said, “At this stage, these are allegations made by the investigating agency. The matter is before the court and the accused also has legal rights.”
Legal observers pointed out that cases investigated under the PMLA often involve long legal proceedings and detailed scrutiny of financial records.
A Delhi-based advocate said, “Custody granted by the court does not amount to conviction. The investigation will continue and evidence will be examined during the trial.”
The case has attracted attention because Al-Falah University is a known minority educational institution and the allegations involve large-scale financial transactions linked to charitable and academic bodies.
At the same time, some members of the Muslim community expressed concern that institutions run by minorities often come under intense public scrutiny once investigations begin.
A community member from Delhi said, “If there is any wrongdoing, the law should take its course. But institutions serving minority students should not be judged before the court ruling.”
Officials from the ED maintained that the investigation was based on documentary evidence and financial transactions traced during the probe.
The agency has already filed a chargesheet in the matter, and further questioning of the accused is expected during the police custody period granted by the court.
The matter is likely to come up for further hearings in the coming days as investigators continue to examine financial records, company links and overseas investments allegedly connected to the case.
