Al-Falah University founder sent to 13-day ED custody in money laundering case

A Delhi court on Wednesday remanded Al-Falah University founder Jawed Ahmed Siddiqui to 13 days’ custody of the Enforcement Directorate (ED) in connection with a money laundering case linked to alleged terror funding. Siddiqui, arrested on Tuesday evening, was produced before Additional Sessions Judge Sheetal Chaudhary Pradhan at her residence close to midnight, with proceedings continuing until 1 a.m.

The court observed that the ED had complied with all requirements under Section 19 of the Prevention of Money Laundering Act (PMLA). “Considering the gravity of the offence and that the investigation is at a nascent stage, I deem it appropriate that the accused is granted ED custody remand for 13 days,” the judge said.

According to the ED, Al-Falah University misrepresented itself as a UGC-recognised institution and falsely claimed its National Assessment and Accreditation Council (NAAC) status. The agency alleged that the university generated Rs 415.10 crore in educational revenue between 2018 and 2025, describing the growth as a “meteoric rise”, with earnings rising from Rs 24.21 crore in 2018–19 to Rs 80.10 crore in 2024–25.

The ED also pointed to discrepancies between the group’s financial statements and the substantial assets it had accumulated. Special Prosecutor Simon Benjamin told the court that funds collected from students and the public were diverted for personal use, adding that several individuals had confirmed Siddiqui oversaw key financial decisions.

Seeking 14-day custody, the ED argued that Siddiqui’s interrogation was necessary to “unearth and quantify” the alleged proceeds of crime. The agency maintained that Siddiqui, as founder and managing trustee of the Al-Falah Charitable Trust, continued to exercise de facto control over the university and its institutions, raising the possibility of fund transfers or attempts to hide assets.

Siddiqui was arrested after day-long searches across Delhi-NCR on Tuesday. The ED raided 19 locations linked to the Al-Falah Trust and the university, seizing around Rs 48 lakh in cash. Officials said the investigation is also connected to the Red Fort area car blast case.

He will remain in ED custody as the probe into suspected financial irregularities and alleged laundering of funds through educational entities continues.

With PTI Inputs