Al-Falah University says it 'won't shut down', reassures anxious parents amid ongoing probe

Al-Falah is currently under scanner

Al-Falah University in Faridabad on Saturday attempted to calm growing concerns among students and their families, as regulatory pressure and a money laundering investigation continue to intensify, after the university made headlines for its connection with the accused in the Red Fort blast case.

A professor addressing reporters outside the campus said the institution was not facing closure. "The university won't shut down," he said on Saturday, while responding to speculation triggered by recent enforcement and regulatory action on the institution.

The Times of India reported that around 20 anxious parents visited the university to meet officials and submitted a formal representation to Vice-Chancellor Dr MA Khan, seeking clarity on the institution’s academic standing and future. Many expressed uncertainty over whether their children’s degrees would remain valid amid the ongoing inquiry.

Earlier in the day, the university issued a response to a show-cause notice from the National Assessment and Accreditation Council (NAAC), which had flagged the use of outdated accreditation details on its website.

In a written clarification, the institution termed the lapse “an oversight” and said the displayed accreditation had been removed. Officials also apologised, calling it a “website-design error".

The controversy goes beyond regulatory compliance. The Enforcement Directorate (ED) is currently investigating the Al-Falah group, which oversees the university, a medical college and a hospital, over alleged large-scale financial irregularities.

According to ED sources, contracts worth crores were funnelled into companies belonging to relatives of the group’s chairman, Siddiqui. Investigators also allege that funds were diverted through shell firms linked to family members.

Siddiqui was arrested earlier this week under the Prevention of Money Laundering Act (PMLA). Searches across 25 locations connected with the group allegedly resulted in the recovery of over ₹48 lakh in cash, electronic storage devices, and documents indicating diversion of revenue.

Court documents reviewed by investigators suggest that between the 2018–19 and 2024–25 financial years, the organisation earned approximately ₹415 crore from its educational ventures.

The ED claims that the revenue was generated through misrepresentation, forgery and misleading students about accreditation and regulatory approvals. Officials described the investigation as “at an early stage”, but said custodial interrogation was essential to uncover the full extent of the alleged wrongdoing and ensure assets were not shifted or concealed.