Why Al-Falah University Founder Jawad Ahmed Arrested Amid Crackdown in Delhi Blast White-Collar Terror Case

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Delhi: In a major crackdown on the 'White Collar Terror Module' case linked to Delhi Red Fort blast, the Enforcement Directorate (ED) on Tuesday arrested Jawad Ahmed Siddiqui, founder of Al-Falah University, in a money laundering case linked to the Al-Falah Charitable Trust.The probing agency in a statement said, "Directorate of Enforcement (ED) has arrested Jawad Ahmed Siddiqui, Chairman of the Al-Falah group, under Section 19 of the Prevention of Money Laundering Act."The arrest followed a detailed investigation and analysis of evidence gathered during search operations conducted at premises connected to the Al-Falah group. The probe stems from an ECIR recorded by the ED under PMLA in connection with the group.

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According to the ED, the investigation was initiated on the basis of two FIRs registered by the Crime Branch of Delhi Police.The FIRs alleged that Al-Falah University, Faridabad, made fraudulent and misleading claims of NAAC accreditation to deceive students, parents, and stakeholders for wrongful gain.It was further alleged that the university falsely claimed UGC recognition under Section 12(B) of the UGC Act, 1956, with the intent to cheat aspirants and cause wrongful loss.In a coordinated operation at 5:15 AM on Tuesday, officials carried out searches at over 25 premises connected to the Al-Falah group in Delhi NCR. The action is part of an ongoing investigation into financial irregularities, shell companies, accommodation entities, and money laundering.The role of Al-Falah Trust and related entities is under scrutiny, with key personnel overseeing finance and administration also covered.As many as 9 shell companies linked to the group — all registered at a single address — are under examination. Early findings point to multiple risk indicators consistent with shell-company behaviour, including:

• No physical presence or utility usage at declared business addresses.
• Common mobile numbers and emails across companies.
• Absence of EPFO/ESIC filings inconsistent with reported operations.
• Overlapping directors/signatories and weak KYC trails.
• Minimal salary disbursal through banking channels and lack of HR records.
• Synchronised incorporation patterns and shared contact details.

Prima facie discrepancies have also been noted in claims regarding UGC and NAAC recognition. The UGC clarified that Al-Falah University is included only under Section 2(f) as a State Private University and has never applied for inclusion under Section 12(B), and is not eligible for grants under that provision.Al-Falah Charitable Trust was constituted by a public charitable trust dated 08.09.1995, with Jawad Ahmad Siddiqui named as one of the first trustees and designated as the Managing Trustee.All educational institutions under the group are financially consolidated under this trust, which is effectively controlled by Siddiqui.The Al-Falah group has seen a meteoric rise since the 1990s, growing into a large educational body. However, ED noted that this rise is not backed by adequate financials.On November 18, 2025, ED conducted search operations at 19 locations in Delhi, including the university premises and residences of key persons. Investigators revealed that large amounts of proceeds of crime were generated, with evidence showing crores of rupees diverted to family-owned entities.For example, construction and catering contracts were awarded to firms owned by Siddiqui’s wife and children.During the searches, cash worth over Rs 48 lakh, multiple digital devices, and documentary evidence were seized. Several shell companies were identified, and violations under other Acts were detected.Evidence established Siddiqui’s role in controlling the trust and its activities, including diversion of funds to family concerns and layering of proceeds of crime.After establishing his culpability, Jawad Ahmed Siddiqui was arrested on November 18, 2025, under Section 19 of the PMLA, 2002, following due legal procedure. He has been produced before the court for ED remand. Further investigation is underway.