Al Falah University founder arrested in ED money laundering investigation

Al Falah University founder Jawad Ahmed Siddiqui was arrested on 18 November by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act after searches across more than 25 premises linked to the institution and its trusts. Officials said the arrest followed analysis of documents and electronic records gathered during the raids.

The university, based in Faridabad, Haryana, is run by the Al Falah Charitable Trust. Siddiqui serves also as its chairman. The ED said the operation stemmed from information indicating the use of shell firms and accommodation entries through entities associated with the trust. Officers claimed that some of the transactions under scrutiny did not appear to reflect genuine business activity, prompting the agency to expand its investigation.

The arrest developed alongside a series of searches that began earlier this week. Investigators seized ledgers, company papers, computer equipment, and internal financial files from properties in Delhi, Faridabad, and other NCR locations. They said the material is being examined to establish the “flow of funds” between the trust, its companies, and outside entities.

Separately, Delhi Police have been pursuing two FIRs related to the university’s regulatory compliance after the University Grants Commission (UGC) and the National Assessment and Accreditation Council (NAAC) raised concerns about the institution’s accreditation claims. NAAC had stated that the university used its name without approval on its website.

Earlier, the National Investigation Agency (NIA) detained four people associated with Al Falah University, including three doctors, while examining possible links to the Red Fort car blast case. They were later released. An official told reporters at the time, “We had no idea of the doctors’ activities … Our campus has never been used for funding or experiments linked to terrorism.” The NIA informed a court that it found no evidence connecting them to extremist activity.

Siddiqui’s arrest adds to a run of legal difficulties for members of his family. His brother, Hamood Ahmad Siddiqui, was held in Hyderabad recently in connection with a decades-old investment fraud investigation led by police in Madhya Pradesh. Officers in that case said he had headed a financial firm in Mhow in the late 1990s, where several investors alleged they had been promised unusually high returns.

The ED said Siddiqui would be questioned on documents uncovered during the raids and on transactions traced to companies linked to the trust. Officers said the inquiry concerns the origins and destinations of the funds, as well as the role of entities suspected to have acted as fronts. The agency may seek a custodial remand to continue questioning him.

The university issued a brief statement confirming that it would cooperate with all investigating authorities and provide documents requested by the ED and the police.

ED investigation, financial trail

Officials involved in the operation said the material seized during searches includes digital records showing fund transfers between the trust, related firms, and several accommodation-entry providers. They said investigators are comparing the records with tax filings and bank statements to establish beneficiary ownership.

According to the ED, some companies linked to the trust provided rented premises to other related entities, while also appearing in financial chains under examination. Officers said the use of multiple layers of firms is a key part of the inquiry, and further searches are likely.

Regulatory concerns raised earlier

The Delhi Police FIRs filed earlier this month followed complaints from UGC and NAAC. UGC alleged that the institution made claims of recognition that did not match official records, while NAAC said its name was used without its approval. Police said they were examining how the information was presented on the university’s website and the basis on which accreditation-related material was prepared.

The ED is also reviewing documents from past cases involving the trust and its associated firms. One earlier case from 2000 involved allegations of fund misappropriation through shell companies. Officers said they were comparing the methods described in that case with the material collected in the current investigation.

Siddiqui is expected to appear before a special PMLA court, where the ED will present its request for remand. The case remains open, and further action is likely once the seized documents are examined.