FARIDABAD: Crores of rupees were allegedly siphoned off by the Al-Falah trust to family-linked entities, with contracts for construction and catering awarded to companies owned by chairman Jawad Siddiqui’s wife and children, ED sources said.
The
Enforcement Directorate (ED) on Tuesday arrested Jawad Ahmed Siddiqui, chairman of the Al-Falah group — the entity that runs the hospital in Faridabad where the suicide bomber behind the Red Fort car blast and other accused in the case were employed.
Siddiqui has been sent to 13-day ED custody.
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These funds, ED argues, constitute proceeds of crime because they were collected during periods when the University was publicly misrepresenting its accreditation and statutory status.
The court observed that this money was allegedly obtained directly through cheating, forgery, and use of fabricated documents—scheduled offences under PMLA.
According to the ED, the money was allegedly obtained through cheating, forgery and use of fabricated documents—offences scheduled under the Prevention of Money Laundering Act (PMLA).
The court observed that the investigation is still at an “nascent stage” but described the alleged financial offences as “grave.”
It said custodial interrogation was necessary to trace further proceeds of crime, prevent dissipation of tainted assets, and avoid potential interference with witnesses or destruction of records.
Siddiqui was booked under the Prevention of Money Laundering Act (PMLA) following a day-long search on at least 19 premises belonging to Al-Falah University and associated entities. The search also covered the residential premises of key persons in the group.
“The arrest took place following a detailed investigation and analysis of evidence gathered during searches conducted on premises related to Al-Falah group in the ongoing money laundering probe and after establishing Siddiqui’s culpability in the offence,” ED said late on Tuesday.
During the raids, the agency seized over ₹48 lakh in cash, multiple digital devices, and documentary evidence. Investigators also identified multiple shell companies and uncovered numerous violations allegedly committed by the group.
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‘Doctor blowing himself up unsettles me’- Iltija Mufti on Delhi blast, says Kashmiris trapped in vicious cycleThe ED initiated its probe following two FIRs registered by the Delhi Police Crime Branch, which alleged that Al-Falah University had made fraudulent claims about NAAC and UGC accreditation to mislead students, parents, and other stakeholders. The FIRs claimed the motive was to wrongfully gain financially and cause losses to students and the public.
The UGC had earlier clarified that Al-Falah University is included only under Section 2(f) as a State Private University, has never applied under Section 12(B), and is not eligible for grants under that provision.
The ED’s arrest of Siddiqui marks a major step in the ongoing probe into financial irregularities and fraudulent practices at the Al-Falah group, including the alleged diversion of crores of rupees to family-linked entities.
The ED also searched 25 premises connected to the Al-Falah group, which runs a hospital and medical college in Faridabad, among others, on Tuesday when Siddiqui was arrested.
The ED told the court that Al-Falah University chairman Jawad Ahmad Siddiqui had complete control of the Al-Falah trust and the university, including various companies allegedly used to divert trust funds.
At least nine shell entities with no business activities, all controlled by Siddiqui, have been identified.
During the searches on the Al-Falah University premises, a hard disk containing back-up of all the digital devices, tally data, etc. was found hidden in the library and was seized along with other documents, sources said.
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