New Delhi [India], July 13 : The Delhi High Court on Monday reserved its order on the interim bail plea of Jawad Ahmed Siddiqui, Chairman of Al Falah Trust, in two money laundering cases registered under the Prevention of Money Laundering Act (PMLA).
Siddiqui has sought six weeks' interim bail on medical grounds, citing the health condition of his wife, who is suffering from cancer.
Justice Saurabh Banerjee reserved the order after hearing arguments from both Siddiqui's counsel and the Enforcement Directorate (ED).
Senior advocate Vikram Choudhary, assisted by Talib Mustafa, appeared for Siddiqui and submitted that his wife is seriously ill and undergoing chemotherapy, requiring his presence and support. The counsel also stated that Siddiqui's two sons are currently outside India, with one working and the other pursuing studies.
On the other hand, ED's Special Counsel Zoheb Hossain opposed the interim bail applications, saying that, as per medical records, the petitioner's wife is not in stage 4. She is on medication and responding to it.
The ED said that her illness was not new, as she had been suffering from cancer since 2022. It was submitted that other family members were available to take care of her and that she was responding to treatment. She had travelled to the UAE herself in February 2026.
It was also submitted by the ED that there are 4 cases against the petitioner and there is a flight risk if he is enlarged on bail.
Countering the submissions of the senior counsel for the petitioner that the petitioner may be asked to wear a GPS Band, if the ED has apprehension of his flight risk.
On June 24, the Enforcement Directorate (ED) filed a reply opposing the interim bail plea of Jawad Ahmed Siddique in the Al Falah Trust money laundering case.
The ED filed a reply saying that the accused is the principal architect and beneficiary of the tuition fee collected on a fraudulent NAAC accreditation claim. There exists a strong likelihood that, if the accused is released on bail, he may dissipate or conceal the proceeds of crime acquired through criminal activities.
In the reply, it is stated that investigation findings establish that the accused was the principal architect and beneficiary of the financial regime that facilitated the collection of funds in the form of tuition fees, generated through fraudulent claims regarding the university's NAAC accreditation, false UGC 12(B) claims and defrauding NMC and DMER, Haryana and their subsequent diversion into family-owned concerns and overseas investments.
It is also stated that it is identified that the accused exercises control over an entity named Jasma Jewellers LLC in Dubai. A document titled "VerifyContract.aspx", which is a Share Transfer Agreement of 12.06.2023, was recovered from the mobile phone of the accused.
The document reveals that the company was initially incorporated with Jawad holding a 30% shareholding and Usama Akhtar holding a 70% shareholding, and that Jawad's shareholding was subsequently transferred to his son, Afham Ahmad Siddiqui, the ED said.
It is also unearthed that Jawad has transferred funds to Afham Ahmad Siddiqui, and further, the same is being invested in Jasma Jewellers LLC AED 1,50,000 has been transferred as a gift to the bank account of Afham. It has been noticed that funds were further invested in Jasma Jewellers LLC as personal investments by Afham Ahmad Siddiqui from the same bank account, the agency stated.
The ED further said that it is evident that the POC generated from the Al-Falah University/trust/college were routed through the related parties namely Amla Enterprises LLP, Karkun Constructions Developers and Diyala construction and Developers Pvt Ltd owned by his wife, children, and trusted employees, but ultimately controlled by himself took money from India to abroad and invested in the business, movable and immovable properties abroad.
Thus, as Managing Trustee and Chancellor, he abused his fiduciary duties by using charitable and educational institutions as instruments for personal, family, and commercial benefit, in violation of statutory obligations, the ED said.
On June 9, the Saket District Court rejected two pleas of Jawad Ahmed Siddiqui seeking interim bail on the grounds of the ailments of his wife, who is suffering from Cancer.
The court had termed the applications devoid of merit in view of changed circumstances. He has been arrested by the Enforcement Directorate (ED) in a money laundering case linked to Al Falah Trust.
He was earlier granted interim bail on the same grounds on February 7. However, it was challenged by the ED before the Delhi High Court.
Additional Sessions Judge (ASJ) Sheetal Chaudhary Pradhan rejected the interim bail applications, saying, " I am of the considered view that both applications moved on behalf of the accused/applicant are devoid of merit and hence dismissed."
While dismissing the applications, the court noted that in the present matter, the accused has failed to show that his wife is terminally ill or is unable to take care of her daily routine and requires his constant support and further that there is no other adult member or caregiver who can be made available for the wife of the accused.
The court said, " Further, the court cannot lose sight that the previous interim bail application of the accused was allowed only for the reason that there was a war-like situation, and his three adult children were unable to travel to India."
"However, no such situation or circumstances are prevailing now, and the submissions made on behalf of the accused that his adult children cannot travel due to studies are discarded. It is expected of adult children to take care of their parents in such an emergent situation, and it cannot be said that the children cannot be a caregiver to their mother," ASJ Pradhan said in the order on June 9.
It was argued that the absence of any alternative caregiver is a matter of record. His parents are deceased, his wife's father has expired, and her mother is elderly, aged over 75 years, and comorbid.
His three children have been residing in the UAE since 2017 and 2019, well before the onset of the wife's illness. The eldest son must remain in the UAE to look after his younger siblings, and no other adult family members are residing with the Applicant's wife.
The investigation agency had said that in view of the influence that the respondent exercises over his relatives and employees, there exists a high likelihood of tampering with witnesses if the respondent is released on interim bail.