Al Falah Chief 'Dishonestly' Made Rs 415 Crore From Students: Probe Agency

Seeking custody of Al Falah group chairperson Jawad Ahmed Siddiqui in a money laundering case, the Enforcement Directorate has told a Delhi court that he received at least Rs 415 crore "generated dishonestly" from students of educational institutes run by the group, and had incentives to flee India.

Faridabad's Al Falah University, which is run by the group, is at the epicentre of an investigation into the Red Fort blast in Delhi on November 10, in which 15 people were killed. The bomber, Dr Umar Mohammad alias Umar-un-Nabi, was an assistant professor at the university, and several other members of the white-collar terror module linked to the blast also worked there.

Siddiqui was arrested on Tuesday night, after day-long searches were conducted against the group, and produced before Additional Sessions Judge Sheetal Chaudhary Pradhan at her home around midnight.

Seeking 14-day custody, the ED - which filed a case under the PMLA (Prevention of Money Laundering Act) on November 14 based on two Delhi Police FIRs - told the judge that under Siddiqui's directions, Al Falah University and its controlling trust generated "proceeds of crime" of Rs 415.1 crore by "dishonestly" inducing students and parents to part with money based on false claims of accreditation and recognition, news agency PTI said in a report.

The agency alleged that Al-Falah University falsely claimed that it was recognised by the UGC (University Grants Commission) and also misrepresented the status of its NAAC (National Assessment and Accreditation Council) accreditation. NAAC is an autonomous body funded by the University Grants Commission (UGC), which assesses and accredits higher education institutions in the country.

ED said the Al Falah group has seen a "meteoric rise" since the 1990s and had become a major player in the educational space. "However, the financials of the various entities are at variance with the huge amount of assets and wealth accumulated by the group," it said.

'Proceeds Of Crime'

Justifying the need for his custody, the agency said, "Given the gravity of the present allegations (with proceeds of crime quantified in hundreds of crores) and the potential consequences under PMLA, there is a reasonable apprehension that if not arrested he may abscond or remain unavailable for effective interrogation, relocate assets and himself beyond the jurisdiction, and continue to delay or obstruct the investigation."

It said Siddiqui was the founder and managing trustee who was "controlling the mind" of the Al Falah charitable trust and had influence over Al Falah University.

The ED said Siddiqui's custodial interrogation was necessary to unearth and quantify the full extent of the "proceeds of crime", indicating that the amount could be larger than the Rs 415 crore it has assessed so far.

The agency also said Siddiqui could flee India because he has several close family members who are settled in the Gulf countries.

"The accused has significant financial resources and influence and has a history of serious economic offences. His close family members are also settled in Gulf countries and he has incentives to flee India," the ED said.

Siddiqui's lawyer told the court that he was falsely implicated and the two Delhi Police FIRs, on which the ED's case was based, were "false and fabricated."

After hearing both sides, the judge granted the ED Siddiqui's custody for 13 days.

"After carefully considering the submission made, I am of the considered view that all the compliances under Section 19 of the PMLA (Prevention of Money Laundering Act) have been done. Considering the gravity of the offence and that the investigation is at nascent stage, I deem it appropriate that the accused is granted ED custody remand for a period of 13 days (till December 1)," the judge said.