From fake accreditation to fund diversion- Inside Rs 415 crore Al Falah University scam

Al Falah University. (Representative Picture)

Al Falah University, which was the target of the explosion in Delhi, is accused of defrauding students of hundreds of millions of rupees. The Enforcement Directorate took cognizance of two Delhi Police Crime Branch FIRs accusing Al Falah University of fabricating its accreditation status to attract students for admission. The trust collected more than Rs 410 million in fees and tuition revenue through deceptive practices, a court in Delhi was told. It was also stated that the foundation directed the funds to the personal use of Jawad Ahmed Siddiqui, president and founder of Al Falah University. Siddiqui was sent to 13-day ED observation.

Al Falah University scam

Siddiqui was arrested on Tuesday after Al Falah University was examined as part of the investigation into the explosion in the Red Fort area on November 10. 15 people died and many were injured in the explosion. The ED alleged in court that Siddiqui and Al Falah charitable foundation collected Rs 415.10 billion as proceeds of crime by misleading students and parents with false claims regarding NAAC accreditation and UGC recognition. The agency said: “The defendant has a history of serious economic offending… Given the seriousness of the current allegations and the possible consequences under the PMLA, there is a reasonable concern that if he is not arrested he may abscond, relocate assets or obstruct the investigation.”

Al Falah’s fake NAAC accreditation

The ED also told the court that Siddiqui had complete control over the management and affairs of the trust. It has complete control and “order” over staff admissions, accounts and management of wage books. It was stated that the founder of the foundation had access to IT systems and could “destroy or alter records”. The agency, which has sought custody of Siddiqui, said it had to examine the full trail of funds in multiple bank accounts and trace benami deposits and off-balance sheet assets.

Denying the ED’s allegations, Siddiqui’s lawyer argued that he was falsely implicated in the crime and the Delhi Police FIRs were based on fabricated allegations. Siddiqui will remain in custody in the ED until December 1.