The Enforcement Directorate (ED) has told a court that Al Falah Group chairperson Jawad Ahmed Siddiqui had “incentives” to flee the country, noting that his close family members live in the Gulf and that he obtained at least Rs 415 crore in funds “dishonestly” collected from students enrolled in institutions run by his trust.
Siddiqui was taken into custody by the agency on Tuesday night following extensive searches across premises linked to the Al Falah University group in Faridabad.
The university is a key focus of the ongoing probe into the November 10 Red Fort area blast that killed 15 people and injured several others.
He was produced early Wednesday at the residence of Additional Sessions Judge Sheetal Chaudhary Pradhan (Saket court), where the ED sought 14 days’ remand for custodial interrogation. The court eventually granted 13 days’ ED custody until December 1.
According to the agency, the university and its controlling trust, acting under Siddiqui’s direction, generated proceeds of crime worth Rs 415.10 crore by inducing students and parents to pay money based on “false accreditation and recognition claims.”
The ED said Siddiqui’s arrest was necessary because of concerns that he might abscond and refuse to cooperate.
“Accused has significant financial resources and influence and has a history of serious economic offences. His close family members are also settled in Gulf countries and he has incentives to flee India.
“Given the gravity of the present allegations (with proceeds of crime quantified in hundreds of crores) and the potential consequences under PMLA, there is a reasonable apprehension that if not arrested he may abscond or remain unavailable for effective interrogation, relocate assets and himself beyond the jurisdiction, and continue to delay or obstruct the investigation,” the ED told the court.
The agency described Siddiqui as the founder and managing trustee who “controlling the mind” of the Al Falah charitable trust and exerting de facto influence over Al Falah University and its affiliated institutions.
It argued that his custodial interrogation was essential to determine the full scale of the “proceeds of crime,” including those not reflected in disclosed income tax returns, and to enable timely attachment and confiscation under the Prevention of Money Laundering Act (PMLA).
The ED further alleged that Siddiqui had “command” over staff managing admissions, fee records, accounts and IT systems across the university and associated institutions, creating a risk that he could “destroy or alter records.”
“The entire Al Falah educational ecosystem is controlled by him (Siddiqui) and only a portion of the proceeds of crime worth Rs 415.10 crore has been identified so far...,” the agency told the court while seeking remand.
It also stated that the Al Falah group has witnessed a “meteoric rise” since the 1990s, transforming into a major educational organisation.
“However, the financials of the various entities are at variance with the huge amount of assets/wealth accumulated by the group,” the ED informed the court.
Siddiqui’s lawyer argued that his client had been falsely implicated.
Granting the remand, the court held that the arrest complied with PMLA provisions and noted the “gravity” of the allegations, adding that the investigation was still at a nascent stage.
The ED’s money laundering case is based on two FIRs registered earlier by the Delhi Police.