The Enforcement Directorate (ED) has alleged that Al-Falah University and its controlling trust generated proceeds of crime worth at least Rs 415.10 crore by fraudulently inducing students and parents to pay fees based on false accreditation and recognition claims.
The investigative agency made its claims in the remand application filed before a court after the arrest of Al-Falah group chairman Jawad Ahmed Siddiqui on late Tuesday evening. The agency had arrested Siddiqui under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, following a detailed investigation and analysis of evidence gathered during a search action conducted earlier on Tuesday at premises related to the Al Falah group. The search was in connection with an ongoing probe in an Enforcement Case Information Report (ECIR) recorded by the ED on November 14 under PMLA in connection with the Al Falah Group.
The ED said an analysis of Income Tax Returns from Financial Year (FY) 2014-15 to FY 2024-25 — the period after the university’s establishment — revealed substantial revenues shown as voluntary contributions and educational receipts.
It said the trust declared Rs 30.89 crore in FY 2014-15 and Rs 29.48 crore in FY 2015-16 as “voluntary contributions”. From FY 2016-17 onwards, large incomes were reported as “receipts from main object” or “educational revenue”, including βΉ24.21 crore (FY 2018-19), βΉ41.97 crore (FY 2019-20), βΉ55.49 crore (FY 2020-21), βΉ55.15 crore (FY 2021-22), βΉ89.28 crore (FY 2022-23), βΉ68.87 crore (FY 2023-24) and βΉ80.10 crore (FY 2024-25).
The agency said the aggregate income from years when institutions lacked valid accreditation stands at Rs 415.10 crore. The ED told the court that Siddiqui exercised complete control over the Al-Falah educational ecosystem, and only a portion of the proceeds of crime has been identified so far.