The Enforcement Directorate (ED) may attach the Al Falah University campus in Faridabad, Haryana. Official sources indicated Sunday this action stems from a significant money laundering probe. This investigation links the university’s funding to alleged proceeds of crime and a Red Fort blast-related terror case.
ED Investigation Uncovers Irregularities
The ED is investigating how the university’s construction was funded. Investigators suspect significant capital for these projects came from illicit funds, termed “proceeds of crime” under the Prevention of Money Laundering Act (PMLA). A large portion of these illicit funds allegedly funded university structures in the Dhauj area of Faridabad.
The agency arrested Al Falah Group chairman Jawad Ahmed Siddiqui in November. He faces money laundering charges. These charges link to accusations of cheating students at institutions run by his Al Falah Trust. The federal probe agency asserts these institutes lacked valid accreditation for teaching.
Allegations of False Accreditation and Fraud
The ED alleges Al Falah University misrepresented its official status. It falsely claimed recognition from the University Grants Commission (UGC). The university also misrepresented its accreditation status from the National Assessment and Accreditation Council (NAAC).
NAAC is an autonomous body funded by the UGC. Its role is to assess and accredit higher education institutions in India. Without proper accreditation, the validity of degrees and courses can be severely compromised.
In November, the ED stated the university and its trust, directed by Siddiqui, generated “proceeds of crime” totaling at least Rs 415.10 crore . This sum was reportedly acquired by inducing students and parents to pay fees based on fraudulent accreditation claims. The agency also probes at least five instances where General Power of Attorney documents for land acquisition in Delhi were allegedly forged at the trust’s direction.
University’s Link to Red Fort Blast Probe
The university’s name emerged during an investigation into a “white-collar” terror module. This probe has led to over 10 arrests, including three doctors. The National Investigation Agency (NIA) and Jammu and Kashmir Police are conducting this investigation.
Umar-un-Nabi, a doctor from the Al Falah medical college, became a suicide bomber. On November 10 last year , he detonated an explosive-laden car outside the Red Fort in Delhi. This blast killed 15 people, drawing scrutiny to the university.
Legal Process and Student Academics
The ED registered its case against Siddiqui and the Al Falah Group under the Prevention of Money Laundering Act (PMLA) on November 14 . This action followed the agency’s cognizance of two First Information Reports (FIRs) filed by the Delhi Police.
Siddiqui’s lawyer denied the charges in court. He asserted his client was falsely implicated. The lawyer claimed the two Delhi Police FIRs were “false and fabricated,” challenging the ED’s case.
Asset attachment under PMLA prevents dissipation or sale of “proceeds of crime.” Once final, a government-appointed receiver may administer the campus. This ensures students can continue studies without interruption, safeguarding their academic future during prosecution against management.
Regulatory Changes Affecting Private Universities
Following the Al Falah case, Haryana amended laws to expand regulatory control over private universities. New provisions allow the state government to shut down private universities for national security concerns, signaling stricter oversight.