ED Says Al Falah Chairperson Had ‘Incentives to Flee’; Court Sends Him to 13-Day Custody

The ED stated to a court that Jawad Ahmed Siddiqui, the chairperson of the Al Falah group, had "incentives" to leave India because his close family members have settled in the Gulf and he collected at least Rs 415 crore in cash "dishonestly" from students of educational institutions run by his Trust.

The federal investigation agency searched the Al Falah University group in Faridabad for a full day before apprehending Siddiqui on Tuesday night. The University is in the centre of the investigation into the November 10 explosion in the Red Fort region, which left fifteen people dead and numerous others injured.

He was presented early on Wednesday at the home of Additional Sessions Judge Sheetal Chaudhary Pradhan (Saket court), where the agency requested a 14-day remand for questioning while in custody.He was placed in 13-day ED detention by the court until December 1.

The agency told the court that under Siddiqui's leadership, the institution and its controlling trust made Rs 415.10 crore in proceeds of crime by deceitfully persuading parents and students to give money based on fictitious promises of accreditation and recognition.

It further claimed that Siddiqui's arrests was necessary as there was an apprehension of his absconding and of non-cooperation.

"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.

It claimed that Siddiqui was the managing trustee and founder of the Al Falah charity trust, "controlling the mind" of the organisation and exercising de facto control over Al Falah University and its affiliates.

It claimed that Siddiqui's custody interrogation was required to enable the timely attachment and confiscation under the PMLA and to uncover and quantify the entire scope of the "proceeds of crime," including those not yet visible in the revealed income tax return (ITR) numbers.

Additionally, the ED asserted that Siddiqui could "destroy or alter records" and has "command" over the employees who manage the University's and other Trust-affiliated institutions' admission registers, fee ledgers, finances, and IT systems.

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 ED informed the court seeking his remand.

The agency said the entire Al Falah group has seen a "meteoric rise" since the 1990s, metamorphosing into a large educational body.

"However, the financials of the various entities are at variance with the huge amount of assets/wealth accumulated by the group," it told the court.

Siddiqui's attorney stated in court that his client has been wrongly accused in this case.

The court granted Siddiqui a 13-day detention to the ED, citing the PMLA's provisions for his arrest, the "gravity" of the crime, and the fact that the investigation was still in its early stages.

In order to launch its case against the Al Falah group under the anti-money laundering law, the ED has taken notice of two Delhi Police FIRs.