Last Updated:December 24, 2025, 19:41 IST

The probe under PMLA centres on the systematic diversion of charitable funds and the generation of at least Rs 415 crore in illicit proceeds

The private university was running at least nine educational institutions that included streams like humanities, language, molecular science, engineering, and medical science. File pic/PTI

In a major investigative breakthrough, the Directorate of Enforcement (ED) has exposed a massive financial and regulatory scandal involving the Al-Falah Charitable Trust and its associated academic institutions. CNN-News18 has learnt the inside details of the investigation. The probe, conducted under the Prevention of Money Laundering Act (PMLA), 2002, centres on the systematic diversion of charitable funds and the generation of at least Rs 415 crore in illicit proceeds. At the heart of the web is Jawad Ahmad Siddiqui, the chairman-cum-chancellor of Al-Falah University, who was recently arrested and remains in judicial custody following high-intensity searches across 20 premises in the National Capital Region (NCR).

Al-Falah University has come under the scanner ever since the Delhi car blast case investigation pointed to individuals with alleged links to the varsity. The November 10 blast near Delhi’s Red Fort killed at least 13 people and triggered a nationwide terror investigation.

Accreditation Fraud and Institutional Deception

The ED’s investigation indicates that Al-Falah University and its medical college allegedly induced thousands of students and parents to pay substantial fees by making fraudulent claims regarding academic standing. Despite the expiry of its NAAC “Grade A” accreditation, the university website reportedly continued to display the status to lure new admissions. Furthermore, the institution claimed UGC 12(B) recognition—a status it never held—thereby misleading stakeholders about its eligibility for central grants. This calculated deception allowed the group to amass massive revenues that were subsequently “layered” and integrated into private family-owned businesses.

The Dhauj Medical College and Regulatory Manipulation

The probe has revealed shocking details regarding the Al-Falah School of Medical Sciences in Faridabad. Investigators have uncovered evidence suggesting that mandatory inspections by the National Medical Commission (NMC) were compromised through fraudulent practices. This included the use of “on-paper” doctors and “fake patients” to artificially satisfy infrastructure requirements during inspections. Beyond academic fraud, the medical college campus recently came under separate federal scrutiny after it was linked to the Red Fort blast module, with allegations that the facility was used by suspects involved in the November 10 terror incident.

Diversion of Funds and Land Fraud

A significant portion of the diverted funds was reportedly channelled into related-party transactions designed to enrich Siddiqui’s family. Construction contracts for the hospital complex were awarded to M/s Karkun Construction & Developers, a firm almost entirely owned by Siddiqui’s son and daughter. Similarly, hostel catering was outsourced to a firm controlled by his wife. The investigation also identified a brazen land grab involving the Tarbia Education Foundation. The foundation allegedly used a forged General Power of Attorney (GPA) from deceased landowners to acquire a plot in Madanpur Khadar, using funds diverted directly from the university’s coffers.

International Links and Dual Nationality Issues

The ED is now tracing the group’s global footprint, including a recently incorporated firm in the United Kingdom, Ennoble Education and Training Limited, where Siddiqui’s children were listed as British nationals despite holding Indian passports. Digital evidence further suggests the existence of a jewellery business in Dubai and substantial cross-border holdings. Relevant findings have been shared with the Income Tax Department and the Delhi Police for further action under their respective mandates.

Read More