Media persons outside the Al Falah School of Medical Sciences and Research Centre, in Faridabad.
Credit: PTI photo
New Delhi: The Enforcement Directorate on Wednesday claimed that Al Falah group chairperson Jawad Ahmed Siddiqui, who was arrested in money laundering case, had "incentives" to flee India as his close family is settled in the Gulf, even as a court sent him to 13 days custody.
The ED informed the court that Siddiqui allegedly received around Rs 415.10 crore "dishonestly" from the students of educational institutes run by his Trust by claiming NAAC accreditation and UGC recognition.
He was produced before Additional Sessions Judge Sheetal Chaudhary Pradhan at her residence around midnight and the court proceedings lasted till 1am. The ED sought 14-day custody but the court granted 13 day custody till December 1.
Siddiqui was taken into custody on Tuesday following searches at 19 premises linked to the Group, which runs Al Falah University in Faridabad and other educational institutions. The Al Falah University came under the scanner for fraudulently claiming NAAC accreditation and UGC recognition after some of its faculty in the 'white collar terror module' case and Red Fort blast.
The ED registered a case of money laundering based on two FIRs filed by Delhi Police's Crime Branch, accusing the university for making “fraudulent and misleading” claims on NAAC accreditation and UGC recognition with an “oblique motive to cheat” the public.
While Siddiqui's lawyer claimed that his client was falsely implicated, the ED told the court that he 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, the ED claimed.
"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.
Siddiqui as the founder and managing trustee was "controlling the mind" of Al Falah Charitable Trust and exercises de facto influence over Al Falah University and its institutions, it said adding his custodial interrogation was necessary to unearth and quantify the full extent of the "proceeds of crime". The ED also said only a portion of the proceeds of crime worth Rs 415.10 crore has been identified so far.
(with PTI inputs)