The Saket Court on Tuesday sent Al-Falah University Chairman Jawad Ahmad Siddiqui to 13 days of Enforcement Directorate custody in connection with an alleged ₹415-crore money laundering case.
The court observed that the investigation remained at an early stage, making custodial interrogation necessary. Siddiqui will remain in ED custody until 1 December.
The ED took over the probe from the Delhi Police after allegations surfaced that the university had attracted students using false claims of NAAC accreditation and UGC recognition.
According to the agency, the ₹415 crore collected as student fees constituted proceeds of crime generated through deceit.
The ED told the court that Siddiqui exercised complete control over the institution’s financial operations.
Defence Calls FIRs Fabricated
During the hearing, Siddiqui’s counsel argued that all FIRs filed against him were false and fabricated.
He claimed that the investigation was based on assumptions rather than facts.
However, the ED maintained that the financial trail pointed to deliberate wrongdoing, including the use of shell companies for suspicious transactions.
As part of the investigation, the ED examined detailed financial records of Al-Falah Trust and associated institutions.
The agency revealed that nine shell companies linked to Siddiqui operated from the same address but conducted no real business.
Officials suspect he used these entities to layer funds and run possible hawala operations.
Searches Across 19 Locations
The ED conducted searches across 19 premises, including the university campus, the residences of key individuals associated with the Al-Falah group, and several suspected shell companies.
Officials recovered over ₹48 lakh in cash, several digital devices, and key documents they believe are linked to the alleged fraud.
According to the ED, preliminary evidence indicates that the Al-Falah Trust diverted crores of rupees to companies owned by Siddiqui’s family members.
Investigators claim these transfers served no legitimate purpose and formed part of a larger pattern of financial manipulation.
They arrested Siddiqui after analysing evidence recovered from the university premises.
The agency has expanded the inquiry to trace the full money trail, verify the authenticity of university accreditations, and establish the role of other individuals involved.
With the court granting extended custody, the ED aims to uncover the complete network behind the alleged financial misconduct.
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