The Enforcement Directorate (ED) on Tuesday arrested Jawad Ahmed Siddiqui, founder of Al-Falah University and chairman of the Al-Falah Group, in a money laundering case that is now being examined for possible terror-financing links.

His arrest comes as the Faridabad-based university faces intense scrutiny, with investigators calling it the hub of a “white-collar” terror module tied to the November 10 Red Fort blast that killed 14 people.

FIRs Set Off the ED Probe

The ED inquiry began after two Delhi Police Crime Branch FIRs accused Al-Falah University of fabricating NAAC accreditation claims and falsely presenting itself as recognised under Section 12(B) of the UGC Act. The UGC later confirmed that the institution is listed only under Section 2(f) as a state private university and has never been eligible for 12(B) grants.

Trust Structure & Suspicious Finances

Investigators say the Al-Falah Charitable Trust — founded in 1995 with Siddiqui as managing trustee — owns and consolidates all educational arms under the Al-Falah Group. While the group expanded rapidly over the past decades, officials say the financial records don’t match the scale of growth.

Searches at the university and homes of key personnel revealed crores in suspected proceeds of crime, allegedly diverted through family-linked entities. Contracts for construction and catering were reportedly awarded to firms tied to Siddiqui’s wife and children.

Cash Seizure & Shell Firms

The ED seized ₹48 lakh in cash, digital devices, and extensive documents. Multiple shell firms linked to the group were identified, along with suspected violations under several laws. Evidence shows a pattern of fund diversion, layering and misuse of trust money, all allegedly controlled directly by Siddiqui.

Possible Terror-Financing Angle

Alongside the financial trail, the ED is probing whether any of the laundered funds may have reached individuals connected to the Red Fort blast. This aspect remains under investigation. Siddiqui was arrested on November 18 after officials said they had established his role in generating and layering illicit funds.

Links to Arrested Doctors & Red Fort Blast

Several individuals tied to the university remain under the scanner, including arrested doctors Dr Muzammil Shakeel and Dr Shaheen Sayeed. Dr Umar Nabi — who was driving the Hyundai i20 that exploded near Red Fort — had also worked as an assistant professor at Al-Falah University.

Before the blast, authorities had uncovered a network stretching across J&K, Haryana and Uttar Pradesh, allegedly linked to Jaish-e-Mohammed. They seized 2,900 kg of explosive materials from two rented rooms in Faridabad and arrested several people, including two Al-Falah doctors and a cleric from a Shopian mosque.