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New Delhi: The campus of Al Falah University in Haryana’s Faridabad may soon face provisional attachment by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA), following revelations that alleged proceeds of crime were used in its construction, official sources said on Sunday.
The ED is probing whether funds generated through alleged financial irregularities by the Al Falah Group were diverted into building infrastructure at the university’s Dhauj campus. Investigators believe a portion of the illicit money—classified as “proceeds of crime” under the PMLA—was channelled into the construction of multiple university buildings. The development comes against the backdrop of investigations triggered after the Red Fort area blast, in which the university’s name surfaced during a broader probe into a so-called white-collar terror module.
Chairman Arrested, Assets Under Scanner
The chairman of the Al Falah Group, Jawad Ahmed Siddiqui, was arrested by the Enforcement Directorate in November on money laundering charges. The ED has alleged that institutions run by the Al Falah Trust cheated students by collecting fees even though several courses lacked valid accreditation and recognition.
According to ED estimates placed before a court, the university and its controlling trust allegedly generated “proceeds of crime” worth at least ₹415.10 crore by dishonestly inducing students and parents to part with money through false claims of accreditation and recognition.
The agency is currently identifying and valuing both movable and immovable assets of the Al Falah Trust, which owns the university and other educational institutions. Once the probe reaches a particular stage, the ED is expected to issue an order to provisionally attach assets found to have been created from or linked to the alleged illicit funds.
Students’ Education Likely to Continue
Sources indicated that even if the campus is attached, students may be allowed to continue their studies uninterrupted to protect their academic interests. Under established legal practice, a government-appointed receiver or administrator can be vested with the management of the campus after attachment, ensuring that teaching and examinations continue while criminal proceedings move ahead. An attachment under PMLA is intended to prevent assets from being sold, transferred or otherwise dissipated during the investigation and trial.
Forgery and Land Deals Also Under Probe
The ED is also investigating at least five suspected cases of forged General Power of Attorney (GPA) documents, allegedly used by the trust to acquire land parcels in Delhi. These transactions are being examined for possible links to money laundering and document fabrication.
The agency registered its case against Siddiqui and the Al Falah Group on November 14, taking cognisance of two FIRs filed by the Delhi Police.
Terror Angle Deepens Scrutiny
The scrutiny of the university intensified after its link emerged in the investigation into a terror module being probed by the National Investigation Agency and Jammu and Kashmir Police. More than 10 people, including three doctors, have been arrested in that case.
One of them, Umar-un-Nabi, a doctor associated with the Al Falah medical college, carried out a suicide bombing on November 10 last year near the Red Fort, killing 15 people.
Accreditation Claims Disputed
The ED has alleged that Al Falah University falsely projected itself as a UGC-recognised institution and misrepresented its NAAC accreditation status. NAAC is an autonomous body funded by the University Grants Commission, responsible for assessing and accrediting higher education institutions.
Siddiqui’s counsel has denied all allegations, claiming his client has been falsely implicated and that the FIRs relied upon by the ED are “false and fabricated”. The investigation is ongoing, and officials said further action, including attachment of assets, will depend on the outcome of the financial and forensic scrutiny.
