The Enforcement Directorate (ED) has unearthed what it describes as a sprawling and systemic fraud at Al-Falah University, detailing allegations of financial misconduct, regulatory deception and grave security lapses in a 260-page chargesheet filed against the institution and its chairman, Jawad Ahmed Siddiqui. The agency has quantified the alleged scam at nearly Rs 493 crore, calling it one of the most serious cases of institutional fraud in India’s higher education sector.
At the heart of the ED’s case is the allegation that Al-Falah University’s medical college hospital “hired” fake patients to artificially inflate patient numbers during inspections by medical regulatory authorities. According to investigators, this elaborate arrangement was designed to mislead inspectors into believing that the hospital met mandatory clinical exposure and patient-load norms required for retaining recognition and certifications for its medical courses.
The ED has claimed that individuals were brought in as “patients” during inspection periods, creating a façade of a functioning teaching hospital. This practice allegedly allowed the university to continue offering medical degrees despite failing to meet essential standards prescribed by regulatory bodies.
Investigators say the operation was not sporadic but systematic, indicating prior planning and institutional involvement to deceive regulators and sustain academic approvals.
Beyond regulatory fraud, the ED has accused Siddiqui and the Al-Falah Charitable Trust of dishonestly inducing thousands of students and their parents to pay hefty tuition and examination fees under false pretences. The chargesheet states that the university falsely projected itself as accredited by the National Assessment and Accreditation Council (NAAC) and claimed recognition under Section 12(B) of the University Grants Commission (UGC) Act.
Recognition under Section 12(B) would have made the university eligible for central grants, an assurance that, according to the ED, was used as a major marketing pitch to attract students. While the university later claimed these misrepresentations were due to “website design errors”, the agency has alleged that the false claims were deliberate and formed a core part of its student recruitment strategy.
In a development that has added a serious national security dimension to the case, the ED has also flagged what it termed a “white-collar terror module” operating from Al-Falah University’s Faridabad campus. The National Investigation Agency (NIA) has established that Dr Umar Un Nabi, the suicide bomber involved in the November 10, 2025, Red Fort blast, was employed as an assistant professor at the university.
According to the ED, the university failed to carry out even basic police verification of its staff, allowing the campus to be used as a logistical base for a terror cell. Digital evidence and recovered chats suggest that university facilities, including medical laboratories and secured rooms, were allegedly used to plan serial bombings across the National Capital Region.
The financial investigation has revealed that the alleged proceeds of crime generated from student fees were not reinvested into educational infrastructure or academic development. Instead, the ED claims the funds were siphoned off through a network of family-controlled shell companies, including Amla Enterprises.
Siddiqui has been accused of layering these funds to facilitate foreign remittances worth several crores to his wife and son. The agency has already attached the university’s sprawling 54-acre campus as part of its action under the Prevention of Money Laundering Act (PMLA).
With the prosecution complaint now filed, the government is considering appointing a receiver or administrator to manage Al-Falah University. Officials say the move is aimed at safeguarding the academic future of currently enrolled students while criminal proceedings against the university’s leadership continue.
