Sitting atop a well-oiled financial machinery that was bringing in at least Rs 415 crore, Jawad Ahmad Siddiqui, chairman of Al Falah group, has been accused of getting false accreditation of Al Falah School of Engineering and Technology, Al-Falah School of Education and Training, Al Falah University controlled by Al Falah Charitable Trust and misappropriation of funds by deceiving families and harming lives and career prospects of countless students.
The Enforcement Directorate (ED) has told a Delhi court that Jawad has a history of serious economic offences and his close family members are also settled in Gulf countries. Arguing that he may flee the country anytime, the ED has got his custody till December 1 as it investigates the proceeds of crime, which the agency believes has been diverted and layered through back accounts, term deposits, investments, and benami assets. The agency isn’t ruling out the possibility of the financial trail leading to destinations outside the country, especially in the Gulf countries.
According to the ED, multiple family members and close associates appear as trustees, directors, and office bearers across the Al-Falah trust, University, and related entities. “However, multiple evidence have shown that the arrested accused controls the entire affairs,” says the ED, elaborating on Jawad’s granular role in designing and approving the false National Assessment and Accreditation Council and UGC claims , structuring and operating the fee collection mechanisms, and deciding on the deployment of funds.
“The University's public claim that it is recognised under section 12(8) of the UGC Act, 1956 is a false, fabricated, motivated and fraudulent assertion, with oblique motive to cheat the aspirants, students, parents, guardians, stakeholders,” say ED officials.
The charges are damning as Jawad is accused of tarnishing the image of the educational system by destroying the belief of students who invest their most valuable and productive years, along with their families’ hard-earned finances, based on the credibility and statutory recognition of an institution.
The ED told the court that when such recognition is false, the degrees the students obtain suffer diminished value, affecting their eligibility for higher education, Government jobs, research opportunities, and professional advancements. “This results in emotional distress, financial loss, wasted years of youth and long-term setbacks in their academic and professional trajectories,” explained D officials as they outlined the charges against the chairman .
The Al Falah Group saw a meteoric rise since the 1990s, metamorphosing into a large educational body. However, the financials of the various entities are at variance with the huge amount of assets and wealth accumulated by the group. As investigators look into the proceeds of Crime, they expect the amounts to multiply manifold .
For now, given the fact that the Al-Falah Charitable Trust primarily ran educational institutions and that the PAN-linked entities are the University and its colleges, the income from FY 2018-19 to 2024-25, amounting to Rs. 415.10 crores, represents fees and related educational receipts from students of the institutions controlled by the trust. This is the non-donation money received by the trust, say ED officials , and form the starting point of the financial irregularities that began with false statutory and false accreditation claims to begin with. |
