Bhopal: Al Falah University founder Jawad Ahmed Siddiqui, already in Enforcement Directorate (ED) custody over alleged terror-financing and money laundering, now faces a separate ₹2 crore fraud case after Bhopal Police registered a fresh FIR.
Siddiqui was arrested by the ED on Sunday and remanded to 13-day custody. The agency alleges that he and the Al Falah charitable trust amassed ₹415.10 crore in proceeds of crime by misleading students and parents with fabricated NAAC accreditation claims and purported UGC recognition. Two Delhi Police Crime Branch FIRs also accuse the university of using fake accreditation to attract admissions.
Officials say Siddiqui had long evaded Bhopal Police despite being wanted in an older fraud case. Investigators claim that between 1997 and 2001, Siddiqui and his brother Hamood operated a chit fund company in Bhopal, promising to double investors’ money before disappearing in 2001. FIRs were later filed at Talaiya and Shahjahanabad police stations, with allegations that Siddiqui also absconded with compensation funds belonging to gas victims.
The fraud, dating back 24 years, is estimated at over ₹2 crore. While Siddiqui secured anticipatory bail in the case, his brother was acquitted. Allegations that he channelled funds into a terrorist plot have resurfaced following his recent arrest.
The ED told the court that Siddiqui exercised “command” over staff managing admissions, accounts, fee records and IT systems, giving him the capacity to “destroy or alter records” during the probe. The agency noted that the Al Falah group expanded rapidly since the 1990s into a major educational network, despite financial disclosures that do not match its assets and accumulated wealth.
Siddiqui will remain in ED custody until December 1 as investigations into large-scale financial irregularities and accreditation fraud continue.
Separately, the Mhow Cantonment Board in Madhya Pradesh has issued a notice to the current occupant of Siddiqui’s ancestral home, ordering the removal of what it described as extensive unauthorised construction on the property.
(Inputs from IANS)