Al-Falah University Fee Revenue Under Scrutiny: ED Says ₹415 Crore from Students, Probe Deepen

The Enforcement Directorate (ED) has told a Delhi court that Al-Falah University and its controlling trust allegedly generated around ₹415.10 crore in fees and educational receipts through mis-representation of accreditation, inducement of students, and possible diversion of funds.

The university’s chairman, Jawad Ahmed Siddiqui, has been taken into ED custody for further investigation. 

What the ED Alleges

Between FY 2014-15 and FY 2024-25, the trust behind the university declared educational revenues that rose significantly — for example ₹24.21 crore in 2018-19, ₹89.28 crore in 2022-23, and ₹80.10 crore in 2024-25.

The ED claims these figures were achieved despite the institution lacking valid accreditation under certain regulatory norms (such as the National Assessment and Accreditation Council “NAAC” accreditation, or Section 12(B) status of the University Grants Commission (UGC) Act) — thereby misleading students and parents.
The funds are alleged to be “proceeds of crime” collected via cheating, forgery and mis‐representation of regulatory status.

Why This Matter is Significant

Student interests at risk: If a university attracts students on false claims of recognition/accreditation, students’ degrees, career prospects and financial investments may be severely compromised.
Financial irregularities linked to terror probe: The university is already under investigation in the aftermath of the November 10 car bomb blast near the Red Fort in Delhi, where some accused had links with Al-Falah.
Regulatory and governance implications: The case raises questions about oversight of private universities, accreditation enforcement, and whether educational institutions can become hubs for financial manipulation or worse.
Large sum involved: ₹415 crore is a major figure — both from the perspective of education trust revenue and the seriousness of alleged misconduct.

What the Investigation Focuses On

Tracing fund flows: The ED wants to understand how much of the fees collected were legitimately used for education, and how much may have been diverted to family companies, shell firms or other non-educational expenses.
Validity of accreditation claims: Whether the university falsely claimed NAAC accreditation or UGC Section 12(B) recognition. 

Connections to terror module: Given the university’s links to accused persons in the Red Fort blast, agencies are probing whether any of the funds or infrastructure were misused or linked to terror financing.
Asset protection: ED has warned of “serious risk of dissipation” of tainted assets, meaning properties, bank accounts or other holdings could be encumbered while the probe is active.

What Went Wrong – A Closer Look

False or misleading claims: The university reportedly asserted accreditation it did not have — such as claiming NAAC “A” grade status for constituent colleges when accreditation had expired or never been granted.
Fee collection model: From comparatively small figures in early years, the university’s reported “educational revenue” surged large — despite accreditation concerns. This raises questions about whether students were admitted on the basis of accurate information.
Governance structure: The controlling trust and university management are alleged to have exercised tight control over finances, appointments and related entities, enabling potential diversion of funds.

Figures At a Glance

₹415.10 crore: Amount ED claims was collected as proceeds of crime from fees and related receipts.
Reported annual educational receipts (excerpt):
FY 2019-20: ₹41.97 crore
FY 2022-23: ₹89.28 crore
FY 2024-25: ₹80.10 crore
13-day ED custody: Court granted 13 days of ED remand for Siddiqui to allow detailed interrogation.

Impact on Stakeholders

Students: May face loss of recognition for their degrees, disruptions in placements and further education.
Parents: Hard-earned fees may have been mis-used or the value of the education compromised.
Regulatory bodies (UGC, NAAC) may come under pressure to tighten oversight of private universities.
Private education sector: This case may trigger wider audits, stricter transparency norms and investor/parent caution.