The Enforcement Directorate may move to attach the Al Falah University campus in Haryana’s Faridabad under the anti-money laundering law, according to official sources quoted by PTI. The central agency is examining whether money used to build the university came from alleged proceeds of crime.
Sources told PTI that the ED is probing if funds generated through illegal means were diverted for constructing buildings at the Al Falah University campus in the Dhauj area of Faridabad. The proposed action would be taken under the Prevention of Money Laundering Act.
The development comes after the arrest of Al Falah Group chairman Jawad Ahmed Siddiqui in November on money laundering charges. The ED has alleged that Siddiqui and the Al Falah Trust cheated students and parents by collecting fees despite the educational institutions lacking valid accreditation.
According to the ED, “a part of the proceeds of crime identified in the case is suspected to have been pumped into the construction of various buildings of the university.” The agency is currently identifying and assessing the value of movable and immovable assets owned by the Al Falah Trust, which runs the university and other educational institutions.
Once the investigation reaches a certain stage, the ED is expected to issue an order to provisionally attach assets that are found to be linked to illegal funds. An attachment under the law is meant to ensure that assets are not sold, transferred or disposed of during the course of the investigation.
Sources said that even if the university campus is attached, students are likely to be allowed to continue their studies without disruption. “The education of students will not suffer. A government-appointed receiver can be entrusted with the administration of the campus after the attachment becomes final,” an official said.
While seeking Siddiqui’s remand earlier, the ED told the court that the university and its trust generated proceeds of crime amounting to at least Rs 415.10 crore by “dishonestly inducing students and parents to part with money on the basis of false accreditation and recognition claims.”
The agency has also alleged that the Al Falah University falsely projected itself as a UGC recognised institution and misrepresented its NAAC accreditation status. NAAC is an autonomous body funded by the University Grants Commission that evaluates and accredits higher education institutions.
Apart from this, the ED is investigating allegations that documents related to General Power of Attorney for acquiring land parcels in Delhi were forged at the behest of the trust linked to Siddiqui.
The university’s name also surfaced during investigations into a so called white collar terror module being probed by the National Investigation Agency and Jammu and Kashmir Police. Umar un Nabi, a doctor associated with the Al Falah medical college, was identified as the suicide bomber who carried out the deadly blast near the Red Fort in November last year, killing 15 people.
The ED registered its money laundering case on November 14 after taking cognisance of two FIRs filed by the Delhi Police. Siddiqui’s lawyer has denied all allegations, telling the court that his client has been falsely implicated and that the FIRs are “false and fabricated.”
The ED has maintained that the Al Falah Group saw a rapid rise over the years and that its financial dealings now require close scrutiny under the anti money laundering law.
