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New Delhi, Nov 18 (IANS) The Enforcement Directorate (ED) on Tuesday arrested Jawad Ahmed Siddiqui, founder of Al Falah University and chairman of Al Falah Group, in a money laundering case related to terror financing. He was detained under criminal provisions of the Prevention of Money Laundering Act (PMLA).
The arrest on Tuesday followed detailed investigation and analysis of evidence collected during the search action conducted at premises belonging to Al Falah Group during the ongoing investigation in the ECIR registered by ED under PMLA in connection with Al Falah Group.
According to the ED, it initiated investigation against Al Falah Group on the basis of two FIRs lodged by the Crime Branch of Delhi Police, based on allegations that Al-Falah University, Faridabad has made “fraudulent and misleading claims of NAAC affiliation with the intention of deceiving students, parents and stakeholders for wrongful gain.”
The FIR further mentions that Al-Falah University has made false claim of UGC recognition under Section 12(B) of the UGC Act, 1956, with the aim of defrauding and unfairly causing harm to the candidates, students, parents, guardians, stakeholders and general public.
“The UGC clarified that Al-Falah University is incorporated only as a state private university under Section 2(f), has never applied for incorporation under Section 12(b), and is not eligible for grants under that provision,” the ED said in a press note.
Al-Falah Charitable Trust was formed by a public charitable trust deed on September 8, 1995, naming Jawad Ahmed Siddiqui as one of the first trustees and as the managing trustee.
All educational institutions (universities and colleges) are ultimately owned and financially consolidated by this trust, which is effectively controlled by Jawad Ahmed Siddiqui. The entire Al-Falah Group has seen tremendous growth since the 1990s, transforming into a large educational body.
“However, the increase has not received adequate financial support,” the agency said.
The ED on Tuesday conducted search operations at 19 locations in Delhi, including the campus of Al Falah University and residential complexes of key individuals of Al Falah Group.
The agency’s investigation has revealed that a huge amount of money has been earned from crime.
It said, “Evidence shows that crores of rupees have been given by the Trust to entities owned by the family. For example, construction and catering contracts were given by the Trust/Jawad Ahmed to the entities of his wife and children.”
It further said that during the searches, “over Rs 48 lakh in cash, several digital devices and documentary evidence were found and seized. Several shell companies of the group have been identified. Multiple violations under various other Acts have also been detected.”
“The role of Jawad Ahmed Siddiqui in effectively controlling the trust and its activities has been brought out by numerous evidences. The extensive evidence, which includes diversion of funds to the family concern by the trustees, recovery of cash from the fund, layering of funds etc., clearly establishes the pattern of generation and layering of the proceeds of crime,” it said.
After pleading guilty to the crime and following due legal process, Jawad Ahmed Siddiqui was arrested on Tuesday under Section 19 of the PMLA, 2002.
“He has been produced in the court for the purpose of seeking ED’s remand,” it said.
Further investigation is ongoing.
–IANS
SAS/UK