New Delhi [India], November 18 : The Enforcement Directorate (ED) on Tuesday said it has arrested Jawad Ahmed Siddiqui, chairman of Al Falah group, in a money laundering case.
Siddiqui has been arrested under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. He was arrested following a detailed investigation and analysis of evidence gathered during a search conducted earlier on Tuesday at premises related to the Al Falah group, as part of the ongoing Enforcement Case Information Report (ECIR) recorded by the ED under PMLA in connection with the Al Falah Group.
ED initiated an investigation against the Al Falah group based on two FIRs registered by the Crime Branch of Delhi Police, based on the allegations that Faridabad-based Al-Falah University has made fraudulent and misleading claims of National Assessment Accreditation Council (NAAC) accreditation with an intention to deceive students, parents, and stakeholders for wrongful gain.
It has been further mentioned in FIR that Al-Falah University has falsely claimed University Grants Commission (UGC) recognition under Section 12(B) of the UGC Act, 1956, with an oblique motive to cheat the aspirants, students, parents, guardians, stakeholders and general public to gain wrongfully and cause wrongful loss to them.
The UGC clarified that Al-Falah University is included only under Section 2(f) as a State Private University, has never applied for inclusion under Section 12(B), and is not eligible for grants under that provision.
Al-Falah Charitable Trust was constituted by a public charitable trust deed dated September 8, 1995, with Jawad Ahmad Siddiqui named as one of the first trustees and designated as the Managing Trustee, the ED said.
"All the educational institutions (university and colleges) are ultimately owned and financially consolidated under this trust, which is effectively controlled by Jawad Ahmad Siddiqui. The entire Al-Falah group has seen a meteoric rise since the 1990s, metamorphosing into a large educational body. However, the rise is not backed by adequate financials."
ED conducted search operations at 19 locations in Delhi earlier on Tuesday, including the premises of Al Falah University and the residential premises of key persons of the Al Falah group.
ED said its investigation has revealed that "large amounts of proceeds of crime have been generated. Evidence reveals that the trust has diverted crores of rupees to family-owned entities."
"For example, the construction as well as catering contracts were given by trust and Jawad Ahmad to entities of his wife and children", it said.
During the search, ED said that cash of over 48 lakhs, multiple digital devices, and documentary evidence were found and seized.
"Multiple shell companies of the group have been identified. Numerous violations under several other Acts have also been detected," the agency mentioned in a statement.
Multiple pieces of evidence have brought out the role of Siddiqui in effectively controlling the trust and its activities, said the ED, adding "exhaustive evidence, including recovery of cash from trustees' diversion of funds to family concern, layering of funds, etc., clearly establishes the pattern of generation and layering of proceeds of crime."
After establishing his culpability in the offence, Siddiqui was arrested under Section 19 of the PMLA, 2002, in accordance with due legal procedure.
He has been produced before the court to seek an ED remand.