Preparation to confiscate Al-Falah University under ED Money Laundering Prevention Act, a big blow to the trust.
Al-Falah University : The Enforcement Directorate (ED) may further intensify action against Al-Falah University located in Faridabad, Haryana. According to sources, ED is preparing to attach the university campus under the Prevention of Money Laundering Act (PMLA). The investigating agency suspects that the proceeds of crime i.e. illegal money were used in the construction of many buildings of the university. ED investigation has revealed that the funds used in the construction of buildings of Al-Falah University located in Dhauj area of Faridabad may be part of the alleged crime proceeds. On this basis, the agency is considering action to confiscate the property. If this action takes place, it will be considered a major blow to Al-Falah University and the trust associated with it.
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Al-Falah University has been on the radar of central investigative agencies since the car bomb blast near the Red Fort in the National Capital Region last year. After this incident, investigation started on many aspects related to security and financial transactions, in which some suspicious transactions of Al-Falah Group also came under the ambit of investigation. After this the ED started a thorough investigation into the activities of the university and the trust associated with it. The ED is also probing whether the funds used for the construction and operation of the university were obtained from illegal sources and invested in educational institutions to give them a legitimate look. The investigating agency believes that this matter is not limited to wealth creation only, but may involve a network of large-scale financial irregularities and money laundering.
The chairman has already been arrested
In this case, Jawad Ahmed Siddiqui, Chairman of Al-Falah Group, was arrested by ED in November last year. Serious allegations of money laundering have been made against Siddiqui. ED claims that several educational institutions operated by Al-Falah Trust allegedly defrauded students. According to the agency, these institutions did not have the necessary valid recognition to impart education, yet fees were collected from the students. The ED investigation has also revealed that the money collected from the students was allegedly used for other activities and construction of properties, which falls under the category of offense under PMLA. On this basis, the process of annexing the university campus can now be taken forward.
At present, the date of attachment or the final order has not been officially confirmed by the ED, but sources say that the investigation is in the final stages. If attachment occurs, it could also impact the university’s operations, students and staff. There has been no official response so far from Al Falah University or the Trust on the matter.
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