A Delhi court has sent Jawad Ahmed Siddiqui, founder of Al-Falah University and chairman of the Al-Falah Group, to 13-day Enforcement Directorate (ED) custody in connection with a money laundering case linked to terror financing and large-scale financial fraud at the institution. Siddiqui was arrested on Tuesday as part of the agency&rsquo;s ongoing investigation into alleged irregularities involving fake recognition, misleading claims and unlawful financial practices.
<h3 dir="ltr">Alleged Fake Recognition and Massive Fund Collections</h3>
Investigators say the university admitted students for several years by falsely projecting accreditation and recognition, collecting large sums of money under deceptive claims. ED officials found that Al-Falah University reported substantial income in its tax filings, including over ₹30 crore in voluntary contributions in FY 2014&ndash;15 and ₹29 crore in FY 2015&ndash;16.
From FY 2016&ndash;17 onward, the university shifted from reporting voluntary contributions to showing the money as revenue from educational activities &mdash; a change the agency believes was designed to obscure earlier irregularities. Subsequent financial records revealed revenues such as ₹24 crore in FY 2018&ndash;19 and a steep rise to ₹80 crore in FY 2024&ndash;25.
Overall, the ED estimates that the institution generated roughly ₹415 crore through fake accreditation and false claims related to statutory recognition.
<h3 dir="ltr">Impact on Students and Alleged Misconduct</h3>
The agency alleges that the university misrepresented its accreditation status under NAAC and its undergraduate recognition under Section 12(B), severely harming the academic and career prospects of students who trusted the institution&rsquo;s claims. Officials say many students invested significant time, money and effort only to find the credibility of their degrees compromised.
<h3 dir="ltr">Why ED Needed Custody</h3>
The ED sought custody to trace suspected proceeds of crime, identify associated individuals and uncover the wider money laundering network connected to the university and its related entities. Investigators believe that although several family members appear as trustees and office bearers, Siddiqui controlled all major decisions from fraudulent accreditation claims to fund allocation and property investments.
The agency also expressed concern that Siddiqui might flee, influence witnesses or tamper with evidence if not placed under custodial interrogation.
Siddiqui will remain in ED custody until December 1 as the probe continues.
[Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed.]

ED gets 13-day custody of Al-Falah University founder in money laundering investigation

Al-Falah University Founder in ED Custody

ED gets 13-day custody of Al-Falah University founder in money laundering investigation

November 19, 2025 | 12:34 IST