Haryana-based Al Falah University generated Rs 415 crore proceeds of crime by dishonestly inducing students to join it using false claims, the Enforcement Directorate (ED) told a Delhi Court on Tuesday night.
Seeking remand of Jawad Ahmed Siddiqui, chairman and founder of the university, whom it had arrested on Tuesday evening on money laundering charges, the Central Probe agency said in its remand papers: “The University and its controlling trust, under the direction of arrestee/ accused, have generated proceeds of crime of at least about Rs 415.10 crore, by dishonestly inducing students and parents to part with money on the basis of false accreditation and recognition claims.”
The university has come under the scanner after three doctors working there were identified as suspects in the November 10 Red Fort blast.
At 1 am on November 19, the court sent Siddiqui to 13-days of ED custody. “… considering the gravity of the offence and that the investigation is at nascent stage, I deem it appropriate that the accused is granted ED custody remand for a period of 13 days,” it said.
As many as 12 people were killed in the November 10 Red Fort blast. (Express photo)
Siddiqui was arrested on Tuesday evening, hours after multiple teams of the ED carried out searches at 25 locations linked to the Al Falah group in Delhi-NCR. The agency also initiated an investigation against the Al Falah group on the basis of two FIRs registered by the Delhi Police Crime Branch
“By allegedly fabricating and misrepresenting its NAAC accreditation status and falsely claiming UGC recognition under Section 12(B), Al-Falah University has not only violated regulatory norms but has also irreparably harmed the lives and career prospects of countless students who relied on these claims in good faith,” the ED, represented by Special Public Prosecutor Simon Benjamin, told Additional Sessions Judge Sheetal Chaudhary Pradhan of Saket Court.
The National Assessment and Accreditation Council (NAAC) is an autonomous body under the University Grants Commission (UGC) that assesses and accredits higher educational institutions.
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“Students invest their most valuable and productive years, along with their families’ hard-earned finances, based on the credibility and statutory recognition of an institution; when such recognition is false, the degrees they obtain suffer diminished value, affecting their eligibility for higher education, government jobs, research opportunities, and professional advancement. This results in emotional distress, financial loss, wasted years of youth, and long-term setbacks in their academic and professional trajectories,” the ED’s remand papers said.
Umar was employed as an assistant professor in the general medicine department of Al Falah University in Faridabad. (File)
As per the agency, Al Falah Charitable Trust, which primarily runs educational institutions, deceived students and earned Rs 415 crore from fees and related educational receipts. This Rs 415 crore was deemed by the agency as proceeds of crime.
The ED also claimed that these funds were used for personal and private gain. “… incriminating evidence has been found which indicate the diversion of funds (duped from people) and fees of students for personal and private use. Various persons have admitted that matters with regard to financial decisions were taken by the arrestee/ accused,” it said.
“Meanwhile, the University, through these alleged deceptive practices, has continued to attract admissions and accumulate substantial monetary gains, thereby enriching itself at the cost of students’ trust, future, and legitimate expectations,” it added.
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Nine shell companies registered at the same address which are linked to the group are under examination as part of the investigation into financial irregularities.
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