₹415 Crore PMLA Probe: Delhi Court Sends Al-Falah University Chairman to 13 Days ED Custody

Siddiqui was arrested at around 8.10 pm on November 18 by the ED after the agency invoked provisions of the Prevention of Money Laundering Act (PMLA), alleging that the University and its controlling entities generated over ₹415 crore in proceeds of crime through deception and misrepresentation regarding its academic status.

The proceedings were conducted at the Judge’s residence in compliance with an administrative order of the District & Sessions Judge for South-East Delhi. Siddiqui was produced before the court at around 11 pm, and the matter continued until 1 am before the custody order was passed.

The ECIR stems from two FIRs registered by the Delhi Police Crime Branch on November 13. FIR No. 337 alleges that Al-Falah University falsely continued to claim NAAC accreditation for its colleges long after their ratings had expired. FIR No. 338 accuses the University of falsely asserting recognition under Section 12(B) of the UGC Act, though the University had never applied for or obtained such recognition.

According to the UGC, Al-Falah University is recognized only under Section 2(f) as a State Private University and is not eligible for financial grants. The ED argued that these assertions misled thousands of students, parents and stakeholders and enabled the institution to collect large sums in tuition and related fees.

The ED told the court that analysis of financial records showed that entities under Al-Falah Charitable Trust, including the University and its affiliated institutions, declared over ₹415 crore in revenue from educational receipts between 2018–2025. The agency contends these funds constitute proceeds of crime since they were generated via deception through false statutory claims.

The agency further submitted that Siddiqui exercised complete financial control over the trust and its institutions. Statements from senior officials, including the University’s Chief Financial Officer, reportedly confirm that major financial decisions were taken under Siddiqui’s authority.

The ED also alleged large-scale diversion of funds, including use of student fees for personal or family-linked concerns such as Amla Enterprises LLP and Karkun Construction & Developers. Investigation, according to the agency, also suggested that some properties and assets were layered or held in the names of family members or trusted associates.

The agency argued that arrest was necessary to unearth the full extent of proceeds of crime, prevent destruction or manipulation of records, protect witnesses within the institution, and curtail the possibility of Siddiqui dissipating assets or absconding. The ED sought 14 days of custody for extensive interrogation and tracing of additional money trails.

Counsel for Siddiqui argued that he had been falsely implicated and that even the predicate offences were premature.

However, the defence argued that the accused was fully willing to cooperate with the investigation and sought that custodial remand, if granted, be limited to seven days.

After hearing arguments from both sides and examining the case record, the Court noted that compliance under Section 19 of the PMLA had been duly carried out. Considering the scale of the alleged offences and the fact that the investigation was at an early stage, the court held that custodial interrogation was necessary.

Siddiqui was accordingly remanded to 13 days of ED custody, until December 1, 2025.

The order was pronounced at 1 am, with the judge directing that the application be allowed and proceedings concluded.