Al Falah University Scam: ED Says ₹415 Crore Earned Through Fake Accreditation Claims
Haryana’s Al Falah University is under serious scrutiny after the Enforcement Directorate (ED) accused it of collecting ₹415 crore by misleading students with false claims of recognition and accreditation. The disclosure came before a Delhi Court on Tuesday night, following the arrest of the university’s founder and chairman, Jawad Ahmed Siddiqui , on money laundering charges.
According to the ED, the university and its trust misled parents and students by projecting fake credentials, including false NAAC accreditation and incorrect claims of UGC recognition under Section 12(B). The agency said in its remand note:
“The University and its controlling trust, under the direction of accused, have generated proceeds of crime of at least about Rs 415.10 crore, by dishonestly inducing students and parents to part with money on the basis of false accreditation and recognition claims.”
The institution came under the scanner after three doctors working at the university were identified as suspects in the November 10 Red Fort blast case, deepening concerns about its operations.
At 1 am on November 19, the court sent Siddiqui to 13 days’ ED custody , noting that the probe was still at an early stage and involved serious allegations.
The court observed:
“considering the gravity of the offence and that the investigation is at nascent stage, I deem it appropriate that the accused is granted ED Custody remand for a period of 13 Days.”
Siddiqui’s arrest came hours after the ED raided 25 locations linked to the Al Falah group across Delhi-NCR.
The ED, represented by Special Public Prosecutor Simon Benjamin, told the court that the university had fabricated its NAAC status and falsely claimed UGC recognition, causing immense damage to students’ lives and careers.
The agency said:
“By allegedly fabricating and misrepresenting its NAAC accreditation status and falsely claiming UGC recognition under Section 12(B), Al-Falah University has not only violated regulatory norms but has also irreparably harmed the lives and career prospects of countless students who relied on these claims in good faith.”
Emphasising the emotional and financial toll on students, the ED added:
“Students invest their most valuable and productive years, along with their families’ hard-earned finance when such recognition is false, the degrees they obtain suffer diminished value This results in emotional distress, financial loss, wasted years of youth, and long-term setbacks.”
The agency claims that the ₹415 crore, collected through fees and other educational receipts, qualifies as proceeds of crime. It further alleges Siddiqui diverted funds for personal gain.
The remand note stated:
“incriminating evidence has been found which indicate the diversion of funds (duped from people) and fees of students for personal and private use. Various persons have admitted that matters with regard to financial decisions were taken by the arrestee/ accused.”
The ED added that the university continued to attract admissions using deceptive methods, enriching itself “at the cost of students’ trust, future, and legitimate expectations.”
Investigators have also identified nine shell companies, all registered at the same address and linked to the Al Falah group. These entities are now being examined for possible financial irregularities and money laundering.
According to the ED, the university and its trust misled parents and students by projecting fake credentials, including false NAAC accreditation and incorrect claims of UGC recognition under Section 12(B). The agency said in its remand note:
“The University and its controlling trust, under the direction of accused, have generated proceeds of crime of at least about Rs 415.10 crore, by dishonestly inducing students and parents to part with money on the basis of false accreditation and recognition claims.”
The institution came under the scanner after three doctors working at the university were identified as suspects in the November 10 Red Fort blast case, deepening concerns about its operations.
At 1 am on November 19, the court sent Siddiqui to 13 days’ ED custody , noting that the probe was still at an early stage and involved serious allegations.
The court observed:
“considering the gravity of the offence and that the investigation is at nascent stage, I deem it appropriate that the accused is granted ED Custody remand for a period of 13 Days.”
Siddiqui’s arrest came hours after the ED raided 25 locations linked to the Al Falah group across Delhi-NCR.
How Students Were Misled
The ED, represented by Special Public Prosecutor Simon Benjamin, told the court that the university had fabricated its NAAC status and falsely claimed UGC recognition, causing immense damage to students’ lives and careers.
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The agency said:
“By allegedly fabricating and misrepresenting its NAAC accreditation status and falsely claiming UGC recognition under Section 12(B), Al-Falah University has not only violated regulatory norms but has also irreparably harmed the lives and career prospects of countless students who relied on these claims in good faith.”
Emphasising the emotional and financial toll on students, the ED added:
“Students invest their most valuable and productive years, along with their families’ hard-earned finance when such recognition is false, the degrees they obtain suffer diminished value This results in emotional distress, financial loss, wasted years of youth, and long-term setbacks.”
Money Laundering Trail
The agency claims that the ₹415 crore, collected through fees and other educational receipts, qualifies as proceeds of crime. It further alleges Siddiqui diverted funds for personal gain.
The remand note stated:
“incriminating evidence has been found which indicate the diversion of funds (duped from people) and fees of students for personal and private use. Various persons have admitted that matters with regard to financial decisions were taken by the arrestee/ accused.”
The ED added that the university continued to attract admissions using deceptive methods, enriching itself “at the cost of students’ trust, future, and legitimate expectations.”
Shell Companies Under Scanner
Investigators have also identified nine shell companies, all registered at the same address and linked to the Al Falah group. These entities are now being examined for possible financial irregularities and money laundering.
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