Al-Falah University collected Rs 415 cr by misleading students and parents: ED

Al Falah University

The Enforcement Directorate (ED) told a Delhi court on Tuesday night that Haryana-based Al Falah University illegally generated more than Rs 415 crore by misleading students and parents. According to the agency, the university made false claims about its accreditation and recognition to convince students to join its courses.

The ED made these statements while seeking the custody of Jawad Ahmed Siddiqui, the chairman and founder of the university, who was arrested on Tuesday evening on charges of money laundering. So how did the fraud happen?

In its remand application, the ED said that the university and its parent trust collected Rs 415.10 crore in fees and related charges by making students believe it had valid NAAC accreditation and recognition from the University Grants Commission (UGC) under Section 12(B).

The agency informed the court that these claims were false and that students and their families were deceived. Many of them joined the university believing they would receive degrees recognised for further studies, government jobs, or professional opportunities.

The ED said that fake claims about accreditation “harmed the lives and career prospects of countless students” who trusted the institution. It added that the degrees issued under such false assurances may not hold value, leaving students with emotional stress, financial loss, and wasted years, The Indian Express reported.

Why is the university under the scanner?

Al Falah University came under scrutiny after three doctors associated with it were identified as suspects in the November 10 Red Fort blast. Following this, the ED launched an investigation into the financial activities of the Al Falah group.

The agency on Tuesday conducted searches at 25 locations connected to the university and its trust across Delhi-NCR. The investigation is based on two FIRs earlier filed by the Delhi Police Crime Branch.

The agency said it found evidence suggesting that the money collected from students was diverted for personal and private use. Several people linked to the organisation allegedly told the agency that top financial decisions were taken directly by Siddiqui.

At 1 am on November 19, the court sent Siddiqui to 13-days of ED custody. “… considering the gravity of the offence and that the investigation is at nascent stage, I deem it appropriate that the accused is granted ED Custody remand for a period of 13 days,” it said.

The ED said it is also examining nine shell companies registered at the same address and linked to the Al Falah group. These companies are suspected to have played a role in financial irregularities.

The agency said that the Al Falah Charitable Trust, which runs the university and other educational institutions, earned the entire Rs 415 crore through misleading practices. This money has been labelled as “proceeds of crime”.