Al Falah University Chairman Javad Siddiqui Arrested By Delhi Crime Branch In Fraud Case

New Delhi: In a big move, the Delhi Police Crime Branch arrested Javad Ahmed Siddiqui, chairman of the Al Falah Group and founder of Al Falah University following allegations of fraud and financial irregularities.

This action follows a formal complaint by the University Grants Commission (UGC) and based on the UGC’s allegations, the Crime Branch registered two separate FIRs against Siddiqui, charging him with fraud and associated offences.

Following his arrest, Siddiqui was produced before a Delhi court, which granted the Crime Branch four days of police remand for further probe.

Law enforcement officials confirmed that he remains in custody while the investigation focuses on suspected financial discrepancies and the falsification of records.

Authorities expect more details to emerge as the interrogation progresses.

Money-laundering case 

On Saturday, a Delhi Saket Court listed the hearing of arguments for consideration of the Enforcement Directorate's chargesheet against Al Falah Group chairman to February 13. 

The Enforcement Directorate (ED) filed the charge sheet against Siddique and Al Falah Charitable Trust in an alleged money-laundering case on January 16. 

Additional Sessions Judge (ASJ) Sheetal Chaudhary Pradhan listed the matter for consideration after hearing submissions of counsel for Siddiqui, who sought time for scrutiny of documents filed Alongwith the charge sheet.

Falsely claimed accreditation

The FIRs alleged that the university had falsely claimed accreditation from the National Assessment and Accreditation Council (NAAC). 

The ED has informed the court that it has provisionally attached assets as part of its probe under the Prevention of Money Laundering Act (PMLA). 

Falsely advertised expired NAAC accreditation grades

Earlier, the ED told the court that Siddiqui was arrested in connection with alleged money laundering involving the Al Falah Charitable Trust, which controls the university and its affiliated educational institutions. 

The agency's action followed the Crime Branch FIRs alleging that the university and its institutions falsely advertised expired NAAC accreditation grades.

The ED has further alleged that claims of regulatory recognition were fabricated to mislead students and parents, thereby inducing admissions and the collection of fees through misrepresentation. 

The court recorded that the agency's financial analysis indicated that funds collected during the relevant period appeared to be linked to the alleged misrepresentations, bringing them within the ambit of proceeds of crime under the PMLA.

Searches conducted at multiple locations led to the recovery of cash, digital devices, and financial records. 

Siddiqui's role 

The ED told the court that certain contracts were allegedly diverted to entities linked to the accused's family, and that senior officials confirmed Siddiqui's role in approving major financial decisions. The agency also pointed to alleged layering of funds through related entities to obscure the money trail.

On January 16, the ED attached land and buildings worth ₹140 crore belonging to the university. 

Wider Security Scrutiny

The university has also come under the scanner of national security agencies after the investigation intensified after it was revealed that Umar Un Nabi, a professor at the university, was allegedly involved in the Red Fort blast case that killed 13 people. Furthermore, Dr Muzammil Shakeel and Dr Shaheen Shahid, who investigators have linked to a “white-collar" terror network, were also found to have worked at the university.

Siddiqui is currently being questioned regarding the "white-collar" network and the financial trail of the university’s funding. 

While the institution has previously claimed it is being unfairly targeted and has offered to cooperate with authorities, the mounting evidence of financial misrepresentation has led to significant legal action against its leadership.

Show-cause notice effect

Earlier in November 2024 last year, the university’s website was taken offline after the National Assessment and Accreditation Council issued a show-cause notice over an alleged false accreditation claim. 

The Enforcement Directorate has since said it will examine the institution’s funding and the financial transactions linked to its medical staff.