NEW DELHI: The initial financial probe into the Al-Falah group has unearthed alleged cheating to the tune of Rs 415 crore, said a senior officer in the Enforcement Directorate (ED). The agency is also probing the foreign funding it has received so far.
The group, whose Haryana-based university has come under the scanner after three doctors working there were found to be suspects in the November 10 Red Fort blast that killed 13 people, is being investigated under the Prevention of Money Laundering Act (PMLA).
The varsity based in Faridabad allegedly cheated students and parents by using the false claim that it is accredited with the NAAC and recognised under Section 12(B) of the UGC to attract admissions and fees.
A forensic analysis of income tax returns from the financial years 2014-15 to 2024-25 showed a unified financial structure, said the ED. The bank accounts of Al-Falah School of Engineering and Technology, Al-Falah School of Education and Training, Al-Falah University and the overarching Al-Falah Charitable Trust were all operated under a single Permanent Account Number (PAN).
The data reveals a steady stream of revenue declared as "Receipts from main object" or "Educational Revenue." From FY 2018-19 to FY 2024-25, these declared incomes surged, including Rs 41.97 crore in 2019-20, Rs 89.28 crore in 2022-23 and Rs 80.10 crore in 2024-25. The ED has concluded that the aggregate educational income during the years the institutes were operating without valid accreditation amounts to Rs 415.10 crore.
The agency has stated that these are proceeds of crime rather than steady income to run the institution citing that these receipts were "collected by deception, using false statutory and false accreditation claims," thereby directly linking the funds to the scheduled offences of cheating and forgery.
The ED also said that there are critical red flags in the group's financials. "The financials of the various entities are at variance with the huge amount of assets / wealth accumulated by the group,” it said. The agency is probing potential diversions of funds such as the alleged routing of hostel and mess fees to a family-run entity named Anla Enterprises LLP and funds transferred to another family-linked firm, Karkun Construction and Developers, for construction contracts.
The agency has got 13 days custody of Jawad Ahmed Siddiqui, chairman and founder of the varsity, who was arrested on November 18 on charges of money laundering.