ED Arrests Al-Falah Chairman Jawad Ahmed Siddiqui In Money-Laundering Probe Linked To Red Fort Blast

The Enforcement Directorate on Tuesday arrested Jawad Ahmed Siddiqui, chairman of the Al Falah group, after conducting simultaneous searches in Delhi-NCR targeting the trustees and promoters of Faridabad-based Al Falah University, which is linked to the Red Fort area car blast case, officials said.

Siddiqui has been taken into custody under the criminal provisions of the Prevention of Money Laundering Act (PMLA) and is being presented before a competent court for remand, they said.

The agency seized Rs 48 lakh in cash during the searches that began around 5:15 am, covering 19 locations in Delhi-NCR after a PMLA case was registered based on two FIRs filed by the Delhi Police, according to the officials.

ED investigators also raided an office of the Al Falah Trust in Delhi’s Okhla area, with police and paramilitary forces securing the premises.

Fifteen people were killed in the blast that took place on 10 November near the Red Fort, and the role of several doctors linked to the University and in Kashmir is under scrutiny by anti-terror agencies.

So far, the NIA has arrested two individuals believed to be close aides of "suicide bomber" Dr Umar Nabi, who was driving the car that exploded near the monument.

Al Falah University, located in the Dhouj area of Haryana’s Faridabad district, functions as a medical college-cum-hospital.

According to officials, the ED found that educational institutions under the Al Falah Trust (university and colleges) were ultimately owned and financially consolidated under the Trust, "effectively" controlled by Siddiqui.

The Al Falah group has rapidly expanded since the 1990s into a major educational body, but this growth is not supported by adequate financials, agency officials said.

The Al-Falah Charitable Trust was established through a public charitable trust deed dated 08.09.1995, with Siddiqui named as one of the first trustees and serving as the Managing Trustee, they said.

The agency alleged that crores of rupees were "diverted" by the Trust to family-owned entities.

For instance, officials said construction and catering contracts were awarded by the Trust/Siddiqui to firms belonging to his wife and children.

Multiple shell companies associated with the group have been identified, and numerous violations under various Acts have been detected, they said.

"The role of Siddiqui in effectively controlling the trust and its activities has been brought out by multiple pieces of evidence.

"Exhaustive evidence, including recovery of cash from trustees, diversion of funds to family concern, layering of funds, etc, clearly establish the pattern of generation and layering of proceeds of crime," an ED official said.

At least nine shell (dummy) companies linked to the group, all registered at a single address, are under ED examination, according to the officials.

The ED cited a Delhi Police FIR alleging that Al Falah University made fraudulent and misleading claims of NAAC accreditation to deceive students, parents and stakeholders for wrongful gain.

The police complaint further stated that Al Falah University falsely claimed UGC recognition under Section 12(B) of the UGC Act, 1956, with the intent to cheat aspirants, students, parents, guardians, stakeholders and the general public for wrongful gain.

(with PTI inputs)