Al-Falah University Founder Sent to 13-Day ED Custody in Money Laundering, Alleged Terror Funding Case
Court Grants Remand After ED Alleges University Generated ₹415 Cr by Misrepresenting Accreditation
NEW DELHI: A Delhi court on Wednesday remanded Jawed Ahmed Siddiqui, the founder and managing trustee of Al-Falah University, to 13 days’ custody of the Enforcement Directorate (ED) in connection with a money laundering case linked to alleged terror funding.
Siddiqui, who was arrested late Tuesday evening following day-long raids, was produced before Additional Sessions Judge Sheetal Chaudhary Pradhan at her residence close to midnight, with proceedings continuing until 1:00 AM.
The court observed that the ED had complied with all requirements under Section 19 of the Prevention of Money Laundering Act (PMLA). “Considering the gravity of the offence and that the investigation is at a nascent stage, I deem it appropriate that the accused is granted ED custody remand for 13 days,” the judge stated in the order.
The ED’s investigation stems from allegations that Al-Falah University misrepresented its credentials, falsely claiming to be a UGC-recognised institution and misrepresenting its NAAC (National Assessment and Accreditation Council) status to attract students and collect fees.
According to the agency, this fraudulent practice allowed the university to generate ₹415.10 crore in educational revenue between 2018 and 2025, a growth described by the ED as a “meteoric rise,” with annual earnings surging from ₹24.21 crore in 2018–19 to ₹80.10 crore in 2024–25.
Special Prosecutor Simon Benjamin, appearing for the ED, told the court that funds collected from students and the public were allegedly diverted for personal and private use, adding that Siddiqui, as the founder, continued to exercise de facto control over the university’s financial and institutional decisions. The ED sought custodial interrogation to “unearth and quantify” the full extent of the alleged proceeds of crime and to prevent the possible transfer or hiding of assets.
Siddiqui’s arrest follows raids on Tuesday at 19 locations across Delhi-NCR linked to the Al-Falah Trust and the university, during which approximately ₹48 lakh in cash was seized. Officials confirmed that the money laundering probe is also connected to the ongoing investigation into the Red Fort area car blast case, which has seen the arrest of several individuals linked to the university.