New Delhi, 20 November 2025: The Enforcement Directorate (ED) has arrested Jawad Ahmed Siddiqui, Chairman of the Al-Falah Group and Managing Trustee of the Al-Falah Charitable Trust, in a money laundering case related to alleged financial irregularities and fraudulent claims made by Al-Falah University. Siddiqui was arrested on 18 November 2025 under Section 19 of the Prevention of Money Laundering Act (PMLA), following extensive searches and evidence analysis conducted by the agency.
Case Origin: FIRs Accuse University of Misleading Accreditation Claims
The ED initiated its investigation on the basis of two FIRs lodged by the Delhi Police Crime Branch. The FIRs allege that Al-Falah University, Faridabad, falsely advertised NAAC accreditation with the intention of deceiving students, parents and other stakeholders. The FIR further states that the university wrongly claimed recognition under Section 12(B) of the UGC Act, 1956, in order to mislead aspirants and gain unlawful benefits.
The University Grants Commission (UGC) clarified that Al-Falah University is listed only under Section 2(f) as a State Private University. It has never applied for inclusion under Section 12(B) and is not eligible for central grants under that provision. These discrepancies formed the foundation of the ED’s money laundering probe.
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Trust Structure and Siddiqui’s Control
The Al-Falah Charitable Trust was established on 8 September 1995 through a public charitable trust deed, naming Jawad Ahmed Siddiqui as one of the original trustees and appointing him as the Managing Trustee. All educational institutions under the Al-Falah banner—including the university and its affiliated colleges—are owned and financially consolidated under this trust.
The ED’s investigation indicates that while the group has grown rapidly since the late 1990s, this expansion is not supported by credible financial documentation. Evidence suggests that the trust and its institutions were effectively controlled and directed by Siddiqui.
Searches at 19 Locations; Cash, Digital Evidence Seized
On 18 November, the ED conducted coordinated search operations across 19 locations in Delhi and Faridabad. The searches covered the premises of Al-Falah University, offices linked to the group, and residential properties of key individuals associated with the trust.
During these operations, officials recovered more than ₹48 lakh in cash, multiple digital devices, and documentary evidence indicating significant fund diversion. According to the agency, large amounts of “Proceeds of Crime” were generated and subsequently channelled into family-owned enterprises.
For instance, construction contracts and catering services funded by the trust were allegedly awarded to companies owned by Siddiqui’s wife and children. Investigators also identified multiple shell companies used to layer and obscure the flow of illicit funds.
Fund Diversion, Layering and Shell Companies Exposed
The ED claims that the pattern of financial irregularities points to a deliberate strategy to misappropriate trust funds. Digital records, seized documents, and bank statements reportedly show diversion of significant sums to private entities connected to the family.
The investigation further highlights a network of shell entities created to route, layer and disguise the flow of money. These findings, the agency says, establish Siddiqui’s central role in directing and benefiting from the alleged laundering operations.
Arrest and Court Custody
After compiling what it described as “exhaustive evidence” — including the recovery of cash, links to family-owned companies, and proof of fund layering — the ED arrested Siddiqui on 18 November 2025. He was produced before the designated PMLA court, which granted the agency 13 days of custodial interrogation.
Further Investigation Underway
The ED is now examining the broader financial structure of the group, the authenticity of accreditation and recognition documents, and the money trail involving trust funds. Officials indicated that more disclosures, attachments of properties, and additional arrests are likely as the probe progresses.
