The Enforcement Directorate (ED) has charged Faridabad-based Al Falah University with a Rs 493.24 crore fee fraud and money laundering. The ED alleges the university secured regulatory approvals using “on-paper doctors” and hired individuals linked to terror activities without police verification.
University chairman Jawad Ahmad Siddiqui , 61, and the Al Falah Charitable Trust face charges under the Prevention of Money Laundering Act (PMLA). The ED filed a 260-page chargesheet before a Delhi court, alleging the generation of illicit funds from student fees through misrepresentation of accreditation and recognition.
“On-Paper” Doctors for NMC Approval
The ED chargesheet claims the university employed doctors “on paper” solely to obtain necessary approvals from the National Medical Commission (NMC). These doctors were listed under a “22 days punch” or “two days per week” clause, appearing as regular faculty.
ED officials reported these individuals did not regularly attend college, conduct classes, or treat patients at the university hospital. They were allegedly paid significantly lower salaries compared to other doctors with the same designation within the same department.
The agency found Al Falah University allegedly defrauded the NMC during an inspection, subsequently receiving permission to increase MBBS seats from 150 to 200. Investigation revealed text and video chats showing the hospital appeared “non-functional” less than three weeks prior to a regulatory inspection, with “fake” patients admitted.
Terror-Accused Doctors Hired
The ED probe found the university appointed three doctors without police verification or scrutiny. These appointments included Dr. Muzammil Ganaie, Dr. Shaheen Saeed, and Dr. Umar Nabi.
Dr. Ganaie, a junior resident, and Dr. Saeed, an associate professor, were arrested by the National Investigation Agency (NIA). Dr. Nabi, an assistant professor, is identified as an alleged suicide bomber in the explosives-laden car blast near Delhi’s Red Fort on November 10 last year .
The university’s Vice-Chancellor stated the HR head recommended these appointments, which Chairman Siddiqui approved. The V-C confirmed no police verification occurred. Siddiqui, in his statement to the ED, denied any connection with terrorist or banned organizations.
Financial Fraud and Asset Attachment
The ED identified Rs 493.24 crore as the alleged proceeds of crime in this case. This amount was reportedly collected as annual tuition and examination fees from students.
The university allegedly deceived students with false claims of NAAC (National Assessment and Accreditation Council) accreditation and UGC (University Grants Commission) recognition. The ED has provisionally attached university land and buildings in Dhauj, Faridabad, valued at approximately Rs 140 crore .
The investigation into illicit funds is ongoing, with the ED expecting to file an additional chargesheet. The current probe covers university finances only until March 2025, suggesting the total proceeds of crime could increase.