New Delhi: A Delhi court on Wednesday sent Al Falah group chairperson Jawad Ahmed Siddiqui to ED custody for 13 days even as the agency claimed that he had “incentives” to flee India as his close family members are settled in the Gulf.
The Enforcement Directorate (ED) arrested Siddiqui on Tuesday night after conducting day-long searches against the group, linked persons and the Faridabad-based Al Falah University, which is at the focus of investigation in the November 10 Delhi blast case that killed 15 persons and injured several others.
The federal probe agency also informed the court that Siddiqui received funds of at least Rs 415 crore generated “dishonestly” from the students of educational institutes run by his trust.
He was produced before Additional Sessions Judge Sheetal Chaudhary Pradhan at her residence close to midnight. The proceedings lasted till 1 am.
The judge said, “After carefully considering the submission made, I am of the considered view that all the compliances under Section 19 of the PMLA (Prevention of Money Laundering Act) have been done.”
“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 (till December 1),” the judge ordered.
The ED had sought a 14-day custody.
The university’s role emerged during probe into a ‘white-collar’ terror module in which 10 people, including three doctors, have been arrested by the National Investigation Agency (NIA) and Jammu and Kashmir Police.
One of the doctors at the varsity-cum-hospital, Dr Umar-un-Nabi, is alleged to have acted as a suicide bomber while driving an explosive-laden car on November 10 that blasted outside the Red Fort, killing 15 people.
The ED took cognisance of two Delhi Police FIRs to register its case on November 14 under the anti-money laundering law against the Al Falah Group.
The agency informed the court that the university and its controlling trust, under the direction of Siddiqui, generated “proceeds of crime” of 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.
Siddiqui’s lawyer told the court that his client was falsely implicated in the present matter and the two Delhi Police FIRs were “false and fabricated.”
The ED claimed that Siddiqui’s arrest was necessary as there was an apprehension of his absconding and of non-cooperation.
“Accused has significant financial resources and influence and has a history of serious economic offences. His close family members are also settled in Gulf countries and he has incentives to flee India.
“Given the gravity of the present allegations (with proceeds of crime quantified in hundreds of crores) and the potential consequences under PMLA, there is a reasonable apprehension that if not arrested he may abscond or remain unavailable for effective interrogation, relocate assets and himself beyond the jurisdiction, and continue to delay or obstruct the investigation,” the ED told the court.
It said Siddiqui was the founder and managing trustee who was “controlling the mind” of Al Falah charitable trust and exercises de facto influence over Al Falah University and its institutions.
The ED alleged Siddiqui’s custodial interrogation was necessary to unearth and quantify the full extent of the “proceeds of crime”, including those not yet visible in the disclosed income tax return (ITR) figures and to enable the timely attachment and confiscation under the PMLA.
The ED also claimed that Siddiqui has “command” over the staff that handles admission registers, fee ledgers, accounts and IT systems of the University and other institutions under the Trust and he could “destroy or alter records”.
The entire Al Falah educational ecosystem is controlled by him (Siddiqui) and only a portion of the proceeds of crime worth Rs 415.10 crore has been identified so far…, the ED informed the court.
The ED has alleged that the Al-Falah University falsely claimed that it is a UGC-recognised university and misrepresented its NAAC (National Assessment and Accreditation Council) accreditation status.
NAAC is an autonomous body funded by the University Grants Commission (UGC) that assesses and accredits higher education institutions in the country.
The agency said the entire Al Falah group has seen a “meteoric rise” since the 1990s, metamorphosing into a large educational body.
“However, the financials of the various entities are at variance with the huge amount of assets/wealth accumulated by the group,” it told the court.
