New Delhi: The Enforcement Directorate (ED) has taken decisive action in a major money laundering and financial fraud case linked to the Al-Falah Group. The agency has filed a Prosecution Complaint under the Prevention of Money Laundering Act (PMLA), 2002 against Jawad Ahmad Siddiqui, Managing Trustee and Chancellor of Al-Falah institutions, along with other accused.
ED officials stated that the investigation has so far identified proceeds of crime (POC) amounting to ₹493.24 crore. Additionally, immovable properties worth ₹139.97 crore, including nearly 54 acres of land and associated structures, have been provisionally attached under the Act.
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Massive fee collection through misrepresentation
According to ED findings, Al-Falah Charitable Trust, Al-Falah University, Al-Falah School of Medical Sciences & Research Centre and related institutions misled students and regulators by projecting expired or invalid accreditations as valid. Using these claims, the group allegedly collected large sums in the name of admissions and academic fees.
Investigators said that these deceptive practices resulted in the generation of hundreds of crores in illegal funds, which were later disguised and routed through various bank accounts and assets.
Investigation triggered by Delhi Police FIRs
The ED action stems from FIRs No. 337 and 338 dated 13 November 2025, and FIR No. 0021 dated 10 January 2026, registered by Delhi Police, alleging financial irregularities, academic fraud and illegal fee recovery by the institutions.
Funds layered through family-owned companies
The probe has revealed that Siddiqui allegedly used several family-controlled firms to route and layer the illicit funds, masking their origin. The firms named in the investigation include:
- Amala Enterprises LLP
- Karkun Construction & Developers
- Diyala Construction & Developers Pvt. Ltd.
ED sources confirmed that these entities were used to divert and circulate institutional funds, forming a structured money laundering channel.
Foreign remittances to wife and son under scanner
The agency has also detected suspicious foreign fund transfers involving Siddiqui’s immediate family. Preliminary analysis indicates that:
- Over ₹3 crore was remitted to his wife abroad
- Approximately ₹1 crore was transferred to his son’s overseas account
These remittances, along with other foreign investment links, are currently being examined by the ED’s financial intelligence unit.
Fake accreditation and regulatory violations exposed
The ED investigation highlights multiple compliance failures, including:
- False representation of NAAC “A” grade accreditation
- Misleading claims of UGC Section 12(B) recognition, despite the institution being listed only under Section 2(F)
- Serious violations of National Medical Commission (NMC) norms in the operation of the group’s medical college
Officials said these misrepresentations enabled the group to operate illegally and attract admissions on false promises.
₹110 crore diverted through family-run entities
Financial tracking by ED has established that more than ₹110 crore was transferred through family-controlled companies, forming a significant part of the total ₹493 crore laundering trail.
Main accused arrested, now in judicial custody
The ED confirmed that Jawad Ahmad Siddiqui was arrested on 18 November 2025 under Section 19 of PMLA. He is currently lodged in judicial custody, while the agency continues to examine the broader financial network linked to the case.
Further investigation underway
ED has stated that the investigation is ongoing, and additional attachments, arrests and supplementary charges are likely as more financial and digital evidence is analysed.
The Al-Falah case is now being regarded as one of the largest education-linked money laundering investigations in recent years, raising serious concerns about oversight and regulatory enforcement in the academic sector.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
