A Delhi court on Saturday granted three-day police custody of Al-Falah University chairman and Tarbia Education Foundation director Jawad Ahmad Siddiqui, who was arrested on March 24 in connection with a money laundering case under the Prevention of Money Laundering Act (PMLA).
According to the Enforcement Directorate (ED), the Al-Falah Trust generated proceeds of crime amounting to Rs 493.24 crore through fee collections obtained by allegedly misleading students and regulatory authorities.
The agency alleged that Siddiqui and the institutions under the trust secured an essentiality certificate from the Haryana Government and approvals from the National Medical Commission by deceiving multiple regulators.
Earlier on May 2, the court had dismissed Siddiqui’s regular bail plea in the case. The ED has already filed a prosecution complaint (chargesheet) against him.
Additional Sessions Judge Sheetal Chaudhary Pradhan, while rejecting the bail application, observed that the proceeds of crime generated through Al-Falah University, the trust and its affiliated institutions were allegedly routed through related entities, including Amla Enterprises LLP, Karkun Constructions & Developers and Diyala Construction and Developers Pvt Ltd. The court noted that these entities were owned by Siddiqui’s family members and close associates but were allegedly under his control.
The court further observed that funds were allegedly transferred abroad and invested in businesses as well as movable and immovable properties overseas.
“Thus, as Managing Trustee and Chancellor, he abused his fiduciary duties by using charitable and educational institutions as instruments for personal, family and commercial benefit, in violation of statutory obligations,” the court said in its order.
The ED also informed the court that institutions under the Al-Falah Charitable Trust continued to generate income despite lacking NAAC accreditation and allegedly falsely projecting UGC recognition under Section 12(B). According to the agency, the total proceeds of crime generated through educational receipts amounted to Rs 493.24 crore.
