The Enforcement Directorate (ED) on Tuesday arrested Jawad Ahmed Siddiqui, the founder of Al-Falah University and chairman of the Al-Falah Group, in a money laundering investigation that has now widened to examine possible links to terror financing. Officials confirmed that Siddiqui was taken into custody after extensive questioning and searches at his residence and across locations connected to the university. His arrest comes at a time when Al-Falah University is under intense national scrutiny, following revelations that it served as the operational hub for a so-called “white-collar” terror module tied to the November 10 Red Fort blast, which left 14 people dead and several others injured.
Investigators said the action against Siddiqui was triggered by a series of FIRs filed by the Delhi Police Crime Branch. These FIRs alleged that Al-Falah University had fraudulently used fake NAAC accreditation claims and falsely advertised itself as recognised under Section 12(B) of the UGC Act to mislead thousands of students and parents. The misrepresentation was significant: the UGC later clarified that Al-Falah is recognised only under Section 2(f) as a private state university and has never been entitled to 12(B) benefits, including eligibility for central grants.
The ED’s inquiry subsequently expanded into a full-fledged financial investigation. According to sources, the Al-Falah Charitable Trust—established in 1995, with Siddiqui as a founding and managing trustee—not only owns but financially consolidates all institutions under the Al-Falah Group. While the trust has grown substantially since the mid-1990s, investigators claim the financial records do not reflect legitimate revenue sources to justify this rapid expansion.
During searches at the university campus, trust offices, and the residences of key administrators, the ED seized ₹48 lakh in unaccounted cash, digital storage devices, and a large number of financial documents. These materials reportedly show that crores of rupees in alleged “proceeds of crime” were generated through fraudulent means and then diverted into family-controlled ventures. Investigators found that construction, catering, and maintenance contracts were repeatedly awarded to companies linked to Siddiqui’s wife and children. Several shell companies have also been identified, each suspected of being used to layer and obscure illicit cash flows.
A senior official familiar with the probe said that the financial pattern uncovered so far strongly indicates deliberate fund diversion—with trust money allegedly routed through multiple layers before ending up in entities controlled by the Siddiqui family. The ED has also identified violations under other statutes involved in the functioning of charitable trusts, financial disclosures, and private universities.
One of the most serious aspects of the case now under examination is whether any portion of the diverted or laundered funds was channelled, knowingly or unknowingly, to individuals involved in the Red Fort blast. That line of inquiry is being actively pursued, as investigators attempt to map financial interactions between Al-Falah personnel and the terror suspects. The ED stressed that this angle is still developing and cannot yet be conclusively determined.
The university’s name surfaced prominently in the Red Fort blast investigation because multiple accused were employed as faculty members or held roles on campus. These include Dr Muzammil Shakeel and Dr Shaheen Sayeed, both previously arrested as key members of the Faridabad-based module. Another accused, Dr Umar Nabi—who died in the November 10 explosion while driving the Hyundai i20 loaded with explosive material—was also working as an assistant professor at Al-Falah University. The NIA and Delhi Police have said that many of these individuals leveraged their medical credentials and university positions to acquire chemicals, conduct covert meetings, and establish logistical networks across Jammu & Kashmir, Haryana, and Uttar Pradesh.
Before the blast, authorities had seized a staggering 2,900 kilograms of explosive-making substances from two rented accommodations in Faridabad. The discovery led to multiple arrests, including that of two Al-Falah doctors and a cleric from Shopian in Jammu & Kashmir, as investigators uncovered what they described as a “white-collar” terror network operating under the ideological influence of Jaish-e-Mohammed (JeM).
Following Siddiqui’s arrest on November 18, the ED said it had established his prima facie role in generating, routing, and concealing proceeds of crime. His interrogation is expected to continue in the days ahead as the agency examines both the financial irregularities and possible overlaps with the terror investigation.
