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New Delhi: In a dramatic turn of events unfolding past midnight, Al Falah group chairperson Jawad Ahmed Siddiqui was remanded to 13 days’ Enforcement Directorate (ED) custody by a city court at 1 am on Wednesday, with Additional Sessions Judge Sheetal Chaudhary Pradhan passing the order at her residence. Siddiqui had been taken into custody late on Tuesday night after a full day of ED searches targeting the Al Falah University group in Faridabad, an institution now central to the ongoing probe into the November 10 Red Fort area blast that killed 15 and injured several more.

What has brought the university ecosystem under such intense scrutiny is not only its alleged links to individuals under investigation in the blast case, but also the ED’s description of a “dishonest” extraction of Rs 415 crore from students and parents through false claims of recognition and accreditation.

A ‘Meteoric Rise’ Under the Scanner

According to the ED’s submission before the court, Siddiqui, founder and managing trustee of the Al Falah Charitable Trust, has long exercised absolute control over the university and its associated institutions—“controlling the mind” of the Trust, as the agency put it. This dominance, the ED argued, enabled him to orchestrate an elaborate financial structure in which the group’s reported financials did not reflect the significant assets and wealth amassed since the 1990s.

Investigators say that the trust and its institutions generated proceeds of crime worth Rs 415.1 crore by inducing students and parents to pay fees based on false promises of accreditation. This accusation strikes at the heart of the university’s credibility. They also highlighted a sharp mismatch between the group’s modest declared income and its rapidly expanding infrastructure and assets — a pattern the ED described as a “meteoric rise” unsupported by legitimate financial disclosures.

Fear of Flight, Evidence Destruction, and the Case for Custody

The ED pressed for Siddiqui’s custodial interrogation, citing strong apprehensions of flight risk, mainly since close members of his family are settled in Gulf countries and he possesses “significant financial resources and influence.” These factors, the agency argued, gave him clear “incentives to flee India” to avoid the consequences of charges under the Prevention of Money Laundering Act (PMLA), which can carry severe penalties.

The agency further told the court that Siddiqui maintains “command” over staff handling admissions, fee ledgers, accounts, and IT systems, creating the potential for tampering with or destroying key records vital to tracing the entire trail of illicit funds. Only a portion of the suspected proceeds of crime has been tracked so far, making his interrogation crucial at this stage, the ED said.

University at the Heart of a Larger Investigation

Though the primary focus of the current ED investigation concerns financial irregularities, Al Falah University finds itself under a broader lens due to its proximity to suspects linked to the Red Fort area blast of November 10. This overlap has intensified the urgency and sensitivity of the probe, amplifying public and institutional interest in the university’s operations and admissions architecture.

To support its money-laundering case, the ED has taken cognisance of two FIRs filed by the Delhi Police, enabling it to expand the scope of financial tracing and determine whether the alleged siphoned funds were used for anything beyond institutional expansion.

Legal Pushback

Siddiqui’s counsel firmly rejected the ED’s accusations, asserting that the chairman has been falsely implicated and that the agency’s claims do not withstand legal scrutiny. Despite these objections, the court maintained that Siddiqui’s arrest was consistent with PMLA provisions and that the alleged offences carried “gravity”, especially since the investigation remains in its nascent stage.

The 13-day custody till December 1 sets the stage for what is expected to be a deep, forensic examination of financial records, staff statements, digital trails, and the university’s accreditation-linked documentation.

As the case moves forward, the unfolding revelations about Al Falah University’s financial practices—and its sudden ascent over three decades—are likely to raise broader questions about regulatory oversight of private educational institutions, student safety, and the governance of trusts that run universities serving thousands of students.