Al-Falah University Founder's Brother, On The Run For 25 Years, Arrested In Fraud Case

In a dramatic development spanning two states, the probe into alleged fraud and irregularities linked to Faridabad-based Al-Falah University, the varsity central to the Delhi car blast case, has taken a sensational turn. While the Delhi Police have summoned university founder-chairman Jawad Ahmad Siddiqui for questioning, his younger brother Hamud (Hamood) Ahmad Siddiqui, who had been on the run for nearly 25 years, was arrested by Madhya Pradesh Police in Telangana's Hyderabad in connection with multiple investment fraud cases registered in Mhow in 2000.

Fifty-year-old Hamud, wanted in at least four cases, including a 1988 case related to rioting and attempted murder, was arrested on Sunday in Hyderabad's Gachibowli area and brought to Mhow on Monday.

According to Indore Rural Superintendent of Police Yangchen Dolkar Bhutia, Hamud had been operating a stock-market investment firm in Hyderabad and living under a new identity.

"He was currently operating a share market investment firm in Gachibowli in Hyderabad. Back in 1996, he operated an investment firm with the help of his wife and another person. The firm secured investments from individuals with the promise of 20% returns. He ran the firm for two years but then fled from Mhow without returning the investors' money. In 2000, three cases under Section 420 IPC were registered at Mhow police station against Hamud on the complaints by investors who allegedly lost investments to the tune of Rs 40 lakh-plus," she said.

She said the actual amount of fraud may be far higher. 

"The Al-Falah Fincom Investment Private Limited, which was operated by Hamud as its managing director along with his wife and another person in the late 1990s, is accused of duping investors to the tune of Rs 40 lakh plus. I'm sure the sum may be much higher, which will be revealed as the investigation progresses," she said.

She also confirmed that Hamud had never been arrested since the cases were filed.

"He was never arrested since the three cases were registered in 2000. In 2019, a reward of Rs 10,000 was declared for his arrest, but he remained untraced. We're currently running a special drive on nabbing all those wanted and rewarded criminals who have been on the run for years. Hamud's arrest from Hyderabad is part of that drive only," she added.

Sources said he even had his own household gas cylinder delivered to someone else's address so that police would not be able to trace him.

While Hamud faces three investment fraud cases registered in Mhow in 2000 and an old 1988 case of rioting and attempted murder, the police clarified that his elder brother, Jawad Ahmad Siddiqui, has not been named in any of the Mhow cases.

According to locals, Jawad had originally started an investment firm called Al-Falah Investment from their ancestral home in Kayastha Mohalla in the early 1990s.

After Jawad moved to Delhi, Hamud launched another firm, Al-Fahad Fincom, which later became the subject of multiple fraud complaints. The two brothers allegedly lured investors, including retired Army personnel and Military Engineering Services (MES) staff, by promising to double their money before fleeing Mhow with their families.

Police officials say Hamud also faces a 2000 fraud case in Indore and possibly another registered in Bhopal.

Investigators learnt of his presence in Hyderabad through relatives of the Siddiqui family, following which a coordinated operation led to his arrest.

In the three Mhow cases alone, police say the amount embezzled is around Rs 35 lakh, though the total fraud across states may be higher. Investigators also revealed that Hamud had not maintained contact with his family since fleeing Mhow.

The developments coincide with heightened national scrutiny around Al-Falah University after the November 10 car explosion near Delhi's Red Fort, which killed 13 people.

A National Investigation Agency (NIA) team arrived in Burhanpur on November 15 as part of its wider probe, although it did not contact local police.

The main accused in the blast, Dr Umar Nabi, taught at the Al-Falah University, adding further attention to the institution's leadership.

Jawad's family, which once lived in Mhow's Kayastha neighborhood, has a long and complex local history.

His father, Mohammad Hammad Siddiqui, served as the city Qazi of Mhow. His half-brother had served jail time in a murder case.

Jawad holds a B.Tech degree from a Indore college and studied at a school in Mhow before attempting the Civil Services exam three times.

The family's four-storey ancestral home, known locally as 'Maulana's Building,' remains a recognisable structure in the area.

Meanwhile, Al-Falah University today operates three colleges – the Al-Falah School of Engineering and Technology, Brown Hill College of Engineering and Technology, and the Al-Falah School of Education and Training besides running a 600-bed hospital staffed by doctors trained at its medical college. The university received approval from the University Grants Commission (UGC) in 2015.