Al Falah Group chairperson had reasons to flee India; Rs 415 cr tainted funds identified: ED

Al Falah group chairperson Jawad Ahmed Siddiqui had “incentives” to flee India as his close family members are settled in the Gulf and he received at least Rs 415 crore funds generated “dishonestly” from students of educational institutions run by his Trust, the ED has informed a court.

Siddiqui was taken into custody by the federal probe agency on Tuesday night after it conducted day-long searches against the Al Falah University group of Faridabad. The University is central to the investigation into the November 10 Red Fort area blast which killed 15 and injured several others.

He was produced at the residence of Additional Sessions Judge Sheetal Chaudhary Pradhan (Saket court) early Wednesday where the agency sought his 14-day remand for custodial interrogation.The court sent him to 13-day ED custody till December 1.

The agency informed the court that the university and its controlling trust, under the direction of Siddiqui, generated proceeds of crime of Rs 415.10 crore by dishonestly inducing students and parents to part with money on the basis of false accreditation and recognition claims.

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It further claimed that Siddiqui’s arrests was necessary as there was an apprehension of his absconding and of non-cooperation.

“Accused has significant financial resources and influence and has a history of serious economic offences. His close family members are also settled in Gulf countries and he has incentives to flee India.

“Given the gravity of the present allegations (with proceeds of crime quantified in hundreds of crores) and the potential consequences under PMLA, there is a reasonable apprehension that if not arrested he may abscond or remain unavailable for effective interrogation, relocate assets and himself beyond the jurisdiction, and continue to delay or obstruct the investigation,” the ED told the court.

It said Siddiqui was the founder and managing trustee who was “controlling the mind” of Al Falah charitable trust and exercises de facto influence over Al Falah University and its institutions.

It alleged Siddiqui’s custodial interrogation was necessary to unearth and quantify the full extent of the “proceeds of crime”, including those not yet visible in the disclosed income tax return (ITR) figures and to enable the timely attachment and confiscation under the PMLA.

The ED also claimed that Siddiqui has “command” over the staff that handles admission registers, fee ledgers, accounts and IT systems of the University and other institutions under the Trust and he could “destroy or alter records”.

The entire Al Falah educational ecosystem is controlled by him (Siddiqui) and only a portion of the proceeds of crime worth Rs 415.10 crore has been identified so far…, the ED informed the court seeking his remand.

The agency said the entire Al Falah group has seen 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/wealth accumulated by the group,” it told the court.

Siddiqui’s lawyer told court that his client has been falsely implicated in the present matter.

The court gave Siddiqui’s 13 days remand to ED saying his arrest was as per the PMLA provisions and considering the “gravity” of the offence and that the investigation was at a nascent stage.

The ED has taken cognisance of two Delhi Police FIRs to register its case under the anti-money laundering law against the Al Falah group.