Delhi's Saket Court extended Al Falah Group Chairman Jawad Ahmed Siddique's custody in a Rs 400+ crore money laundering case. The ED alleges large-scale fraud, forged university accreditations, and diversion of funds.
Saket District Court on Monday extended the judicial custody of Al Falah Group Chairman Jawad Ahmed Siddique. He was arrested in connection with an alleged money laundering case involving more than Rs 400 crores.
Additional Sessions Judge (ASJ) Sheetal Chaudhary Pradhan extended the judicial custody of Jawad Ahmed Siddique till December 20. Special Public Prosecutor (SPP) Simon Benjamin appeared for the Enforcement Directorate (ED) and prayed for an extension of custody.
Siddique's Initial Arrest and Remand
Earlier, during a hearing, the ED said that cross-border involvement was revealed during the investigation. The court on November 18 remanded Al Falah Group Chairman Jawad Ahmed Siddiqui to 13 days of ED custody, noting in a detailed remand order that there exist reasonable grounds to believe he committed the offence of money laundering linked to large-scale fraud, forged accreditation claims, and diversion of funds from the Al-Falah University ecosystem.
The remand order, which was passed by Additional Sessions Judge Sheetal Chaudhary Pradhan at her camp office shortly after midnight, records that Siddiqui was arrested late on November 18 following compliance with Section 19 of the Prevention of Money Laundering Act (PMLA) and that ED sought custodial interrogation based on substantial evidence of deception, misrepresentation, and movement of suspected proceeds of crime.
Allegations and ED Investigation
The court, after examining ED's submissions, held that the investigation is at a "nascent stage," the alleged financial offences are "grave," and custodial interrogation is essential to trace further proceeds of crime, prevent dissipation of tainted assets, and avoid influence over witnesses or destruction of electronic and financial records.
The Enforcement Directorate arrested Siddiqui under Section 19 of PMLA on November 18, in connection with alleged money laundering involving the Al-Falah Charitable Trust, which controls the University and its educational institutions. The ED action follows two FIRs registered by the Delhi Police Crime Branch on November 13.
Fraudulent Claims and Misrepresentation
The FIRs allege that expired NAAC accreditation grades were falsely advertised by Al-Falah University and affiliated institutions. The University allegedly fabricated claims of UGC recognition under Section 12(B) of the UGC Act--despite never applying for it and being ineligible for grants. These claims were allegedly used to mislead students and parents into believing the institution held valid approvals and credibility, thereby attracting admissions and fees through fraudulent inducement, the court had noted.
The court had recorded that the ED's financial analysis showed Al-Falah institutions generated about Rs 415.10 crore between FY 2018-19 and 2024-25 through student fees collected, while the University was allegedly misrepresenting its NAAC accreditation and UGC status. The court noted that this money appeared to have been obtained through cheating and forgery, making it proceeds of crime under PMLA.
Searches and Recoveries
Searches at 19 locations on November 18 led to the recovery of Rs 48 lakh in cash, digital devices, financial records and evidence of shell entities. The ED told the court that construction and catering contracts were diverted to firms linked to Siddiqui's family, and that senior officials confirmed he approved all major financial decisions. The agency also pointed to fund layering and related entities used to conceal the money trail.
Court Justifies Custodial Interrogation
Granting 13 days of custody, the court had said that ED interrogation was needed to trace more proceeds of crime, prevent dissipation of assets and avoid tampering with digital and financial records. It also cited the risk of influencing witnesses and possible flight risk, given Siddiqui's resources and family connections abroad.
Siddiqui's counsel claimed the FIRs were false and that he was ready to cooperate, but the court held that custody was justified due to the seriousness of the allegations.
Scope of Ongoing Probe
The ED had said the proceeds of crime may exceed the Rs 415 crore and is examining fund flows, shell entities, properties and the roles of family members and office-bearers.
Connection to Delhi Blast Case
The Al Falah University came under fire in connection with the Delhi blast, which killed 15 people. Suicide bomber Dr Umar worked as an Assistant Professor in the General Medicine Department at Al Falah University in Faridabad. (ANI)
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