New Delhi: Jawad Ahmed Siddiqui, the chairman of the Al Falah Group, was taken into custody by the Enforcement Directorate (ED) on Tuesday night following day-long searches across the Faridabad-based Al Falah University and its affiliated institutions. The federal agency informed the court that Siddiqui had “incentives” to flee India, noting that his close family members are settled in Gulf countries and that he is in possession of at least ₹415 crore in tainted funds allegedly generated through dishonest practices involving students and parents.

Siddiqui was produced before Additional Sessions Judge Sheetal Chaudhary Pradhan, where the ED sought a 14-day remand for custodial interrogation. The court granted the agency 13 days of custody, extending till December 1. The ED’s application highlighted that the university and the controlling charitable trust, both under Siddiqui’s direction, had generated proceeds of crime amounting to ₹415.10 crore by inducing students and parents to part with funds under false claims of accreditation and recognition.

ED Details Allegations and Flight Risk

The ED stressed that Siddiqui’s arrest was essential due to the “grave apprehension” that he could abscond or obstruct the investigation. In court filings, the agency described Siddiqui as a person with significant financial resources and influence, with a history of serious economic offences. “Given the gravity of the present allegations and the potential consequences under the Prevention of Money Laundering Act (PMLA), there is a reasonable apprehension that if not arrested, he may abscond or remain unavailable for effective interrogation, relocate assets and himself beyond jurisdiction, and continue to delay or obstruct the investigation,” the ED told the court.

The agency also highlighted Siddiqui’s control over Al Falah University’s entire operational ecosystem. It claimed that as founder and managing trustee, he is the “controlling mind” of the Al Falah Charitable Trust and exercises de facto authority over the University and its institutions. This includes command over staff managing admission registers, fee ledgers, accounts, and IT systems, with the potential to destroy or alter records critical to the investigation. The ED argued that custodial interrogation was necessary to uncover and quantify the full extent of the proceeds of crime, including amounts not yet reflected in disclosed income tax returns, and to facilitate timely attachment and confiscation under PMLA provisions.

Proceeds of Crime and Financial Discrepancies

According to the ED, only a portion of the proceeds—₹415.10 crore—has been identified so far. The investigation is ongoing, and authorities expect further funds and assets linked to Siddiqui and the Al Falah Group to emerge during interrogation. The agency noted that the Al Falah educational ecosystem has seen a “meteoric rise” since the 1990s, growing into a large network of educational institutions. However, the ED observed a significant mismatch between the group’s reported financials and the massive assets and wealth accumulated over the years, raising concerns about undisclosed or illicit sources of income.

The ED’s probe comes in the aftermath of the November 10 Red Fort area blast in Delhi, which killed 15 people and injured several others. Al Falah University, based in Faridabad, has emerged as a central institution in the investigation. While the university’s direct involvement in the attack is still under investigation, authorities allege that members associated with the institution, including doctors and administrative staff, may have had indirect links or provided material support in planning or executing the incident. The agency has taken cognisance of two FIRs filed by the Delhi Police and registered its case under anti-money laundering laws.

Legal Proceedings and Custodial Interrogation

Siddiqui’s lawyer, appearing before the court, contended that his client had been falsely implicated and urged the judiciary to exercise caution. Despite these claims, the court granted the ED’s request for 13 days of custody, citing the severity of the offences and the fact that the investigation was still at a nascent stage. The court recognised the provisions under PMLA that allow custodial interrogation in cases where there is a risk of asset concealment, flight, or interference with the investigation.

During custodial interrogation, the ED is expected to examine Siddiqui’s financial transactions, his control over the trust and university accounts, and the flow of funds to uncover the full scale of alleged money laundering. Investigators will likely scrutinise bank statements, digital records, property documents, and other financial instruments to trace proceeds of crime both in India and potentially abroad.

Implications for Al Falah University and the Educational Sector

The case against Siddiqui has cast a shadow over the entire Al Falah Group and its educational institutions. Authorities are concerned that misleading claims of accreditation and recognition may have defrauded thousands of students and parents, resulting in a multi-crore financial scam. The ED’s focus on identifying tainted funds is crucial not only for recovering illicit proceeds but also for establishing accountability in the higher education sector, which has often faced scrutiny over unregulated operations, false promises, and financial mismanagement.

Experts note that the Al Falah case underscores the challenges in monitoring private educational institutions in India. While private universities play a vital role in expanding access to higher education, the lack of stringent regulatory oversight can create avenues for misuse of funds, fraudulent claims, and diversion of resources for personal gain. The ED’s action against Siddiqui sends a strong signal to educational entrepreneurs that financial irregularities and misrepresentation can carry severe legal consequences under economic offence laws.

Linkages to Broader Investigations

The ED’s investigation into Siddiqui is part of a larger probe into the Red Fort area blast, with multiple individuals connected to Al Falah University and associated institutions already under scrutiny. Among those arrested are doctors and administrative staff who are believed to be linked to the planning or facilitation of the attack. Investigators are also exploring international connections, given Siddiqui’s family members’ presence in Gulf countries, raising the possibility that some proceeds or assets may have been transferred abroad.

The ongoing investigation highlights the complexity of cases involving both economic offences and links to criminal or terror activities. Authorities face the dual challenge of establishing the financial trail while simultaneously investigating potential connections to violent incidents, which requires meticulous forensic accounting, digital evidence analysis, and international cooperation in asset tracing.

Financial Influence and Institutional Control

Central to the ED’s case is Siddiqui’s influence over Al Falah University and the broader charitable trust. The agency alleges that his position allowed him to control all financial and administrative operations, making it possible to manipulate records and divert funds at will. The ED also emphasized that custodial interrogation is necessary to prevent Siddiqui from using his influence to obstruct investigators or destroy evidence.

Furthermore, the agency pointed out that Siddiqui’s financial and social network, both domestically and internationally, could facilitate attempts to evade the law. By securing custody, the ED aims to prevent any interference with the investigation and to ensure that all leads regarding illicit funds, asset transfers, and institutional mismanagement are thoroughly explored.

Conclusion

The arrest of Jawad Ahmed Siddiqui marks a significant development in the ongoing probe into the Al Falah Group and its alleged financial irregularities. With ₹415 crore already identified as tainted funds, investigators are focusing on tracing the full extent of the proceeds of crime and examining connections to the November 10 Red Fort blast. Siddiqui’s custodial interrogation will play a critical role in unearthing financial evidence, identifying additional suspects or accomplices, and enabling timely legal action under the PMLA.

As the investigation continues, the case is expected to have far-reaching implications for the governance of private educational institutions, regulatory oversight, and accountability of trustees and administrators. The ED’s actions demonstrate a coordinated approach to tackling economic offences with potential links to criminal activity, signalling that individuals controlling large institutional networks cannot evade scrutiny under the law.