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New Delhi: In a dramatic late-night development, the Enforcement Directorate (ED) on Tuesday arrested Al-Falah group chairman Jawad Ahmad Siddiqui in a money-laundering case linked to the Al-Falah Charitable Trust. He was produced in court past midnight and sent to 13 days’ ED custody till December 1, with the remand order being passed at 1 am on Wednesday by Additional Sessions Judge Sheetal Chaudhary Pradhan. Siddiqui, arrested under Section 19 of the Prevention of Money Laundering Act (PMLA), was taken into custody following an ED investigation into the financial dealings of the Al-Falah group, described as detailed and evidence-backed.

Probe Triggered by Fraud Allegations

According to officials, the ED’s action stems from two FIRs filed by the Delhi Police Crime Branch, accusing Al-Falah University in Faridabad of falsely claiming NAAC accreditation and misrepresenting UGC recognition under Section 12(B) to mislead students, parents and other stakeholders. The UGC later clarified that the university is recognised only under Section 2(f) as a State Private University, is not eligible for grants, and has never applied for 12(B) status.

Extensive Searches, Cash Seizure

The ED conducted searches at 25 locations in Delhi on Tuesday, covering the university premises, trust offices and residences of associated individuals. During the operations, officials recovered over ₹48 lakh in cash, digital devices, financial records and documents indicating the alleged diversion and layering of funds. Investigators also found that multiple shell companies linked to the group were used to route funds. The ED alleges that construction and catering contracts were diverted to companies owned by Siddiqui’s wife and children.

Trust Under Scanner

The Al-Falah Charitable Trust, founded on September 8, 1995, with Siddiqui as one of its first trustees and designated managing trustee, oversees all educational institutions under the group. The trust is alleged to be the central vehicle through which funds were diverted to family-owned entities. Officials say the educational group witnessed a “meteoric rise not supported by legitimate financial capacity”, pointing to discrepancies in financial consolidation and expenditure patterns.

“Culpability Established,” Says ED

According to the ED, multiple pieces of evidence—including cash recovery, fund trails, incriminating documents, and electronic data—establish Siddiqui’s role in controlling trust finances and enabling transactions that generated proceeds of crime. After establishing what it described as “sufficient grounds of involvement”, the ED arrested Siddiqui and sought custodial interrogation, following which the court granted 13 days of ED remand.