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New Delhi, Nov 19 (IANS) A Delhi court on Wednesday sent Al-Falah University founder and Al-Falah Group chairman Jawad Ahmed Siddiqui to 13-day Enforcement Directorate (ED) custody in a money laundering case related to terror-financing.
Siddiqui was arrested on Tuesday as part of the agency’s ongoing investigation into alleged large-scale financial irregularities at the university.
“The accused, Jawad Ahmed Siddiqui, is remanded to ED custody till December 1,” the court said.
The agency, in its petition before the court, said that investigation into the alleged fake recognition and misleading claims made by the university has revealed that the institute not only admitted students under false pretenses for several years but also collected huge sums of money through these practices.
ED officials said analysis of income tax returns revealed that the university has reported income of several crores of rupees from financial years 2014-15 and 2024-25.
Of particular concern to the investigators were the financial disclosures for financial years 2014–15 and 2015–16, during which the university reported Rs 30.89 crore and Rs 29.48 crore respectively as “voluntary contributions”.
However, after fiscal year 2016–17, the university began classifying its income as revenue generated directly from its primary academic functions. The ED claims that this change indicates a deliberate attempt to conceal earlier irregularities.
Further financial investigation revealed significant revenues in subsequent years, including Rs 24.21 crore in FY 2018-19 and Rs 80.01 crore in FY 2024-25.
Overall, the ED alleged that around Rs 415.10 crore was obtained through “fake recognition” and false claims of statutory recognition.
The agency has accused the university of betraying the trust and legitimate expectations of students by misrepresenting the position of the National Assessment and Accreditation Council (NAAC) and falsely claiming graduate recognition under Section 12(b).
According to the ED, these misrepresentations “caused irreparable damage to the lives and career prospects of countless students” who relied on the institute’s claims in good faith.
The agency said students invest their most productive years – and their families’ financial resources – based on an institution’s credibility, and inaccurate accreditation results in diminished value of a degree, loss of eligibility for higher education and government jobs, financial setbacks, and emotional distress.
Explaining the need for custodial interrogation, the ED in its remand application had said Siddiqui’s arrest was necessary “to trace further proceedings of the crime, reveal vital evidence and identify other persons involved”.
The agency further argued that there remains a possibility that if the accused is not kept in custody, he may attempt to escape, influence witnesses or tamper with evidence.
The ED had sought 14 days’ custody, saying the court should consider the scale of the alleged proceeds of crime, the number of persons required to confront the accused and the sensitivity of the case.
The agency also stressed that several family members and close associates appear as trustees, directors or office-bearers at Al-Falah University and related entities.
However, the evidence collected so far shows that Siddiqui had control over all major decisions, including those related to the university’s alleged fraudulent recognition claims, fee collection processes and assets and deployment of funds in the properties.
The ED said Siddiqui’s custodial interrogation is necessary to unearth the “entire laundering network” and establish accountability for all persons involved.
–IANS
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