ED attaches Rs 140-cr assets at Al Falah, files chargesheet against univ chairman

“The ED has filed a prosecution complaint before the competent PMLA Court against Siddiqui and others in connection with the alleged generation and laundering of proceeds of crime (POC) linked to Al-Falah Charitable Trust/Al-Falah University and allied institutions/entities,” an ED spokesperson said in a statement.

“Siddiqui was found to have layered POC through family-controlled entities. Institutional funds were routed through family-owned entities including Amla Enterprises LLP, Karkun Construction & Developers, Diyala Construction and Developers Pvt. Ltd., etc. The ED has also found outward foreign remittances of over Rs three crore favouring his wife and around Rs one crore favouring his son in their investigation. Investigation has found that charitable/educational institutions were used as instruments for personal/family/commercial benefit,” the statement said. Till now, proceeds of crime have been quantified at Rs 493.24 crore.

The ED initiated investigation against the Al Falah group on the basis of two FIRs registered by the Delhi Police Crime Branch. “As of now, it has been found that the Trust generated POC amounting to Rs 493.24 crore arising from scheduled offences linked to FIRs.

The Trust displayed/allowed false projections of NAAC ‘A’ grade accreditation after expiry and false projection of UGC Section 12(B) status, and deceived medical education regulators (NMC and DMER, Haryana). The Trust routed over Rs 110 crore to family-controlled firms,” the spokesperson alleged.

During investigation, the ED has found the active role of Siddiqui. “It came to fore during investigation that he exercised dominant control over Al-Falah Charitable Trust, Al-Falah University (including Al-Falah School of Medical Sciences and Research Centre) and related entities, and is found a key beneficiary of the unlawful proceeds,” the spokesperson alleged.

According to the ED, as Managing Trustee and Chancellor, Siddiqui exercised complete administrative, financial and operational control, with other office-bearers functioning as nominal/proxy persons. “One of the key violations committed by him is misrepresentation of NAAC status…The University was projected as recognised under Section 12(B) of the UGC Act, 1956 despite being only under Section 2(f) and not declared eligible under 12(B). Also, the establishment/functioning of the medical college involved violations of NMC norms and procurement of approvals/certifications through misrepresentation and suppression of material facts,” the spokesperson said.

According to the ED, Al Falah Charitable Trust was constituted by a public charitable trust deed dated September 8, 1995, with Siddiqui as one of the first trustees, who was designated as the Managing Trustee. “All the educational institutions (university and colleges) are ultimately owned and financially consolidated under this trust, which is effectively controlled by Siddiqui,” the spokesperson said.