Javed Ahmed Siddiqui, Chairman and Founder of Al Falah Group, is not out of trouble. Investigations revealed that the university raised ₹415 crore through funding. The agency considers this sum as proceeds of crime. Agency suspects Javed possesses more illicit assets or money, still to be uncovered.
ED arrested Javed on Tuesday after a prolonged investigation. Subsequently, he was presented before a special PMLA court in Delhi late Tuesday night, where the court remanded him to ED’s custody for 13 days until December 1. During custody, Javed will be interrogated. ED reported presenting him at the special judge's residence around 11 PM on Tuesday night.
The ₹415 Crore Funding Controversy
ED alleged that between 2018 and 2024, Al-Falah University amassed over ₹415 crore by deceiving students and showcasing fake NAAC accreditation. This sum is deemed as 'proceeds of crime'. The agency claims ₹415 crore is just a preliminary figure. Further investigations may reveal a larger sum and properties.
Misuse of University Fee Funds
ED informed the court that Javed Ahmed Siddiqui had complete control over all financial decisions of the university. He diverted substantial sums collected as fees and other charges from students for purposes other than the university's. A thorough investigation is ongoing to trace this money.
The Fake NAAC Accreditation Scam
The issue surfaced when it was discovered that Al-Falah University secured a fake grading from NAAC. The documents submitted by the university to NAAC were fraudulent and concocted. With this bogus accreditation, the university charged exorbitantly high fees and offered admissions to thousands of students.
Jeopardizing Students' Futures
ED stated in the court that this fraud endangered the careers of hundreds and thousands of students. Many students took admission by paying hefty fees, but the validity of their degrees has now been questioned, putting their futures in limbo.
An Ongoing Fraud Case
Faridabad Police had already registered an FIR in this matter. FIR No. 337/2023 (Sections 420, 467, 468, 471, 120B, etc.) accuses Al-Falah University of fraud, forgery, and criminal conspiracy. ED registered a case under PMLA based on this FIR and conducted raids.
